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Rising truck sales to underpin Platinum group metals demand

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LONDON (Scrap Register): Metals Focus said that strong truck sales and tighter emissions limits should support demand for platinum group metals, although a potential proliferation of electric vehicles is a longer-term risk.

These metals are used for catalytic converters that scrub exhaust emissions in motor vehicles. After attending the LMC Automotive Global Heavy Vehicle Seminar, analyst said growth in the Chinese truck market is nothing short of staggering.

Whereas car sales rose 3% in the first nine months of the year, truck sales surged by 61%. The consultancy points out that 2017 has been an exceptional year for the Chinese truck market due to certain new restrictions and freight companies increasing their fleet size.

Sales may fall next year; still, Metals Focus said PGM loadings in heavy-duty trucks sold in China should increase in the years to come due to implementation of higher emissions standards.

Cushioning the 2018 decline in Chinese sales, feedback from the LMC Seminar suggested that Europe should see healthy gains continuing throughout next year, Metals Focus added.

Meanwhile, orders are picking up in the North American market. A concern for the PGMs, however, is the growing pressure for clean energy, with Telsa recently unveiling the first electric semi-truck. Electric vehicles would not require PGMs for auto catalysts.

Naturally, high costs and a limited infrastructure to cater for such vehicles means that the technology remains a medium to long-term risk to PGM demand as a whole, and not one for the next few years, Metals Focus noted.

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