400,000 oz Platinum Shortage Predicted

November 13th, 2012 by

Spot platinum has advanced as high as $1,597/oz in New York trading today as the market buzzes over the forecast for platinum and palladium released by major refiner and distributor Johnson Matthey.

J-M expects world platinum production to drop by 10% due to strikes and mine closures over safety issues in South Africa, while demand is predicted to see modest growth. Weakness in automobile demand (catalytic converters use platinum) is being offset by jewelry demand in China and India.

Total demand is projected to outstrip supplies by 400,000 ounces, according to the report.