Eastern Platinum Ltd (ELR)

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Platinum set to cross $1,550/ounce

http://www.commodityonline.com/news/Platinum-set-to-cross-$1550ounce-23268-3-1.html

2009-11-25 16:00:00

LONDON (Commodity Online): Platinum prices are witnessing another bull run and according to research firm Johnson Matthey, the metal may cross $1,550 per ounce by mid-2010, as compared with an average $1,178 so far this year.

The reason for this is a possible deficit in supply if automaking worldwide rebounds as much as expected, triggering increased catalytic converter production.

Johnson Matthey told miningweekly.com in Johannesburg that since there is relatively limited potential for supply to increase, you can expect the 2009 surplus to be eaten up pretty quickly.

Johnson Matthey’s precious metals marketing director, Mark Bedford, tells the news service that he expects global vehicle production, which was likely to fall to 57 million units this year, to increase in 2010, possibly to 65-million units.

That would be positive for sales of most platinum group metals, which all are used to make auto catalysts, and possibly boost palladium prices to a mid-year 2010 average of $390/oz. Palladium this year is averaging $254.

A Johnson Matthey report says North American net platinum demand is forecast to fall by more than 25% this year to 140,000 ounces as consumers’ disposable income had shrunk and retailers reduced jewelry-making stocks.
(Source: miningweekly.com)