According to Mikhail Piskunov, head of the Moscow office of Johnson Matthey, one of the world“s largest platinum group metal traders, Russia will market in 2001 a total of 32.6 tons of platinum, a dr…
According to Mikhail Piskunov, head of the Moscow office of Johnson Matthey, one of the world“s largest platinum group metal traders, Russia will market in 2001 a total of 32.6 tons of platinum, a drop of 4.7% on last year, and 143.1 tons of palladium, a drop of 11.5%. Company experts expect the world demand for platinum to rise by 5% to a record level of 184.7 tons and a 24% drop in the demand for platinum to 212.8 tons. In its recent press release, the company attributes the high demand for platinum to the 25% rise of the car industry“s need for platinum, the increasing sale of diesel-powered cars in Europe and the replacement of palladium by platinum in gasoline engines. The increased use of platinum in the manufacture of certain kinds of glass, dental surgery alloys and oil refining have pushed the industrial demand up by 3%. On the other hand, jewellers will cut the purchase of platinum by 11% this year because of excessive stores and low demand. China, where the manufacture of platinum jewellery is still on the rise, remains an exception. The stepped-up mining output in South Africa will increase the supply of platinum by 5%, to 173.5 tons this year. The growth in supply will not overtake that in demand. As a result, a shortage of 11.2 tons of platinum will be felt on the world market in 2001, repeating the pattern of 2000. Johnson Matthey expects the price to vary within US$ 400 to US$ 500 per troy ounce in the coming six months. The demand for palladium is expected to fall in 2001 to a five-year low of 212.8 tons, 24% below the 2000 level. Replacement of the expensive metal and a dwindling demand on the part of electronic component producers are the causes of the fall. The supply of the metal will shrink by as little as 3%, to 234.2 tons in 2001, resulting in the accumulation of an excess of 21.4 tons. The weakness of the world economy and the reduced use of palladium by consumers and heavy supply brought the prices down from US$ 1,094 to US$ 360 per troy ounce in January-September 2001. If these factors prevail, the prices will stay within the US$ 260-380 range in the coming six months Johnson Matthey predicts.