SICK PLATINUM

11th September 2015 By: Martin Creamer - Creamer Media Editor

SICK PLATINUM

In their struggle to stem job losses, government, business and labour continue to search for ways to create greater demand for platinum, the precious metal that South Africa has in such abundance but which is failing to fetch even sustainable rand prices. Top brass calculate that most local platinum output is lossmaking and that the “ill” platinum mines are not even responding to equity injections. Bearish sentiment prevails and market demand refuses to perk up. Globally, weaker-than-expected growth is constraining platinum and, locally, South Africa, according to Moody’s, will narrowly escape recession, with growth of only 1.7% forecast for 2015, followed by 1.9% in 2016.