NEW YORK (Scrap Register): Platinum prices remain near the 11-month high hit at the start of the week, with holdings in platinum exchange-traded funds surging, said commodities brokerage SP Angel.
These funds have added around 20 tonnes of metal this year, SP Angel points out. “Prices have gained as expectations for tough wage negotiations this year in top producer South Africa raised the threat of supply disruptions, and platinum’s cheapness relative to sister palladium becomes more evident,” SP Angel added.
Platinum supply has outpaced demand for the past two years and the World Platinum Investment Council has forecast another global surplus this year of 680,000 ounces.
However, that may change if the South African wage talks later this year break down and workers down tools for an extended period of time.
Further, analysts pointed out, Anglo American Platinum’s chief executive has said there are no prospects of more new mines starting up in the foreseeable future.