Kitco News: Barclays Sees Platinum Deficit At 251,000 Ounces
Barclays Sees Platinum Deficit At 251,000 Ounces
By Kitco News
Thursday March 14, 2013 3:20 PM
(Kitco News) - The platinum market will be in a supply deficit of 251,000 ounces in 2013 as mine supplies fall to their lowest levels since 2000, said Barclays on Thursday.
Mine supply is seen falling 2.7% this year, which is on top of a 9.9% drop in 2012, the firm said, as industrial disputes, safety-related stoppages, power instability, falling ore grades and technical difficulties are among the problems facing the mine industry.
Although demand is expected to fall 5.4% in 2013, in part because of a depressed European auto market, auto consumption overall is expected to grow “in excess” of 400,000 ounces over the next five years, they said. Meanwhile, other industrial usages are seen rising, consuming another 372,000 ounces.
“Assuming mine supply remains flat, and auto scrap supply grows by 10% year-over-year, the platinum market looks set to remain in deficit over the next five years,” they said.