Platinum market could see another surplus in 2018; Prices may average $993 an ounce


NEW YORK (Scrap Register): Standard Chartered has revised its supply balances for platinum and palladium but continues to look for palladium to be in deficit and have the upper hand price-wise.

Analysts said that they doubt there will be meaningful substitution away from palladium toward platinum, even though palladium is now the metal holding the price premium.

Standard Chartered continues to expect palladium to deliver a market deficit this year, but they revise their estimate down to 530,000 ounces from 762,000 previously.

In contrast, Standard Chartered expects the platinum market to remain in surplus and revise their estimate from 180,000 to 231,000 ounces.

Standard Chartered price forecast remains unchanged; the bank expects platinum to average $993 an ounce in 2018 and palladium to average $1,038 an ounce.

“Barring short-term weakness, we expect palladium prices to remain elevated and continue to expect platinum prices to find support on dips towards $900 an ounce,” Standard Chartered added.

The most active July platinum gained by 1.3% to $912.60 an ounce on Thursday, but September palladium, the most-active contract, shed 0.2% to $966.10 an ounce.

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