WPIC lowers platinum surplus forecast, notes healthy demand

T he World Platinum Investment Council (WPIC) has adjusted its platinum supply forecast for this year downward from a 375 000 oz surplus to a 345 000 oz surplus.

The WPIC stated in its latest Platinum Quarterly report, released on Friday, that refined production should grow by 5% this year, as some mining projects ramp up, but mostly owing to the refining of metal built up in the processing pipeline in 2018.

Recycling is forecast to grow by 3% as an increase in platinum recovered from autocatalysts more than offsets a decrease in jewellery recycling owing to the low platinum price.

The WPIC reports that total supply and mine supply of platinum in the second quarter of the year were 1% lower year-on-year and 2% lower year-on-year, respectively. This was owing to pipeline movements in Russia and South Africa.

The WPIC expects refined output from south Africa, excluding stock releases, to be about 5 000 oz less year-on-year this year, as the ramp-up in new projects is more than offset by the expected reduction in yield in mature, high-cost operations.

Inclusive of one-off stock releases, the country’s refined platinum production is likely to grow by 5% year-on-year.

Meanwhile, the WPIC predicts demand for this year will be 9% higher year-on-year, owing to an increase in investment demand, which should offset lower automotive and jewellery demand.

Click here to continue reading...

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

Part of the Stock Digest family of websites

Small Cap Stock Digest

MARKET SUMMARY

INDICES

Name Last Change
DOW 26950.00 0.06%
S&P 500 2991.78 0.01%
NASDAQ 8112.46 0.06%
TSX 16867.20 0.19%
TSX-V 589.98 0.00%

Resource Commodities

Name Last Change
Gold 1521.93 0.08%
Silver 18.63 0.11%
Copper 2.61 2.612
Platinum 901.00 0.67%
Oil 58.64 0.94%
Natural Gas 2.53 0.28%
Uranium 25.53 0.59%

@RSDigest ON TWITTER