https://www.miningweekly.com
Cutting|Environment|Gold|Industrial|Platinum|supply-chain
Cutting|Environment|Gold|Industrial|Platinum|supply-chain
cutting|environment|gold|industrial|platinum|supply chain

Platinum slumps to seven-month low as virus spread saps demand

6th August 2021

By: Bloomberg

  

Font size: - +

Platinum dropped to a seven-month low as the spread of the coronavirus dents the outlook for industrial commodities, while a Federal Reserve official indicated the central bank is on course to taper stimulus.

The metal used in catalytic converters fell for a third day as the spread of the delta strain punctures the narrative of a rapid global recovery. China is facing a growing outbreak that’s prompted analysts to review economic growth projections, while case numbers are climbing from Tokyo to Sydney and in parts of the US.

Platinum has tumbled more than 20% from this year’s peak in February as a computer-chip shortage curbed auto production, and increasing electric-car sales cloud the medium-to-long term consumption outlook. Investment demand also has waned, with exchange-traded funds backed by the metal platinum falling last week to the lowest since February, and money managers cutting their net-bullish bets to the lowest in almost nine months.

Platinum has come under pressure amid concerns about the delta variant and production misses by car manufacturers due to supply chain issues, said Wayne Gordon, a strategist at UBS Group. “The traditional headwinds for precious metals are weighing on some of these industrial precious metals, as well.”

Still, Gordon said he expects a recovery in catalytic-converter demand, and he forecasts more of the metal will be used instead of palladium.

“Platinum is moving into a tighter market environment because of a lack of investment on the supply side and the very strong recovery in autocatalyst demand,” he said.

Platinum slid as much as 1.8% to $1,008.89 an ounce, the lowest since Dec. 23, and traded at $1,013.29 at 1:44 p.m. in New York. Platinum futures for October delivery declined 1.5% to settle at $1,005.70. Spot gold, silver and palladium slipped.
 

Edited by Bloomberg

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.133 0.17s - 107pq - 2rq
Subscribe Now