LONDON (Scrap Register): Stronger European car sales have been supportive for platinum, said Commerzbank in a snippet.
European demand is especially important to the metal since diesel-powered vehicles, which need platinum for catalytic converters, are popular in Europe.
By contrast, gasoline-powered vehicles popular in the U.S. and China can use palladium instead. The European auto industry has got off to a strong start to the new year, Commerzbank added.
“According to the European Automobile Manufacturers Association, a good 10% more new cars were registered in the EU (European Union) in January than a year earlier. Because the European auto market is diesel-heavy, this has lent support first and foremost to the platinum price, which surged by 10% in January,” they concluded.