Platinum deficit forecast to drop – by Allan Seccombe (Business Day Live – May 19, 2015)

http://www.bdlive.co.za/

CHINA’s slowing economy prompted a downward revision to the full-year deficit in the global platinum market by 45,000oz, with the supply side left unchanged as increased supply from SA, the world’s largest source of primary platinum, offset declining output from other producers.

In its latest quarterly report, the World Platinum Council, which was set up by six South African-focused platinum mining firms to give the market regular insights into the platinum market, the full-year deficit for this year was reduced to 190,000oz from 235,000oz the council forecast in March in its fourth quarter report last year.

“The reduction in the demand forecast is primarily due to a downward revision to industrial demand in China based on lower growth forecasts,” the council said on Monday.

Total supply this year is forecast to rise 10% to 7.965-million ounces, with South African production rising 30%, or by 945,000oz, after the five-month strike last year knocked more than 1-million ounces of production out of the global market.

Demand is forecast to rise by 3% to 8.155-million ounces.

Platinum prices could trade between $1,000/oz and $1,250/oz in the medium term, CPM Group said earlier this month. The platinum price on Monday traded at about $1,175/oz.

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