22nd April (Bloomberg) – Demand for platinum from vehicle manufacturers, major, you can extend from this year to help price increases, said London-based GFMS Ltd. company with research.
Demand for platinum in the automobile industry fell by 2.6 million ounces last year, the lowest since 2001, contributing to a surplus of around 1.1 million ounces, GFMS in a report. The prices are about 1.740 U.S. dollars per ounce yesterday, up to 1900 U.S. dollars this year, auto demand increases by 10 percent, Peter Ryan, senior consultant GFMS, said by telephone.
Platinum Award has grown 57 percent last year, boosting the government’s plans to sell new cars has increased investor demand and the use of jewelry to a maximum of five years, the report showed GFMS. has not applied for demolition programs in an increased supply of metal to follow, while jewelry demand rose by 38 percent, said GFMS.
Platinum surplus last year was the highest since 1999 and data GFMSs was exacerbated by the auto industry has sold 600,000 ounces maximize inventory because of the urgent need for cash flow, said GFMS. In South Africa, the world’s largest producer, mining output fell by 1.6 percent to 4.6 million ounces, according to the report.
The surplus is expected to reduce significantly this year because of investor demand and the lack of resignations by Ryan.
likely to be repeated this year without stock movement and demand for Exchange Traded Funds, will exceed supplies of platinum demand by 849,000 ounces last year and a large surplus, said Ryan.
Even if prices fall by $ 1,400, at least not create a higher demand for jewelry in China, according to GFMS. Consumption of platinum jewelry in China shot 73 percent last year. The total demand is expected to increase by 5 percent this year, GFMS forecast.
Palladium, a sister metal platinum used in catalytic converters and jewelry, it can be a deficit in 2010 against a surplus of 582,000 ounces last year, when the demand for passenger cars by 20 percent, said Ryan.
Palladium is more common in gasoline engines for automobiles in the United States, China and Japan, while the platinum from diesel engines to dominate Europe.
Total output growth to be in Europe because the government give up its plan to end, while vehicle production in North America and Japan, two-digit profits weak, GFMS said.
World automobile production increased by 10 percent this year after dipping 14 percent last year, GFMS estimates.
Palladium to call in some ways a bit easier, because the demand for jewelry generic effect such an important issue such as platinum, said Ryan.
Jewelry up to 15 percent of palladium demand in the past year compared to 35 percent of platinum to GFMS.
Reservations on the earth are called platinum deposit in Zurich, ETFs and warehouses monitored by the futures market rose to 2.9 million ounces at the end of last year to 1.4 million ounces last year, GFMS estimates. amounted In PD, the above-ground stocks 7.9 million ounces, GFMS said.
Russia, the world’s largest producer of palladium sold, probably for 1.1 million ounces of reserves of base metals are pushing into the market surplus according to GFMS. The automotive industry has yet to sell the stock of palladium last year, GFMS estimates.
Palladium can be high this year of $ 675 per ounce, compared with about $ 565 yesterday, while investors could prices fall below $ 400 the rest of the year to keep, said GFMS.
