Platinum Surplus Seen Jumping Eightfold After Japan Quake Cuts Car Output

Bloomberg reports the global platinum surplus may jump eightfold after Japan’s worst earthquake slashed car production, reducing the country’s demand to the lowest level in 28 years.

The market news is quoted as saying,

The surge in supply may curb an advance in platinum prices that climbed 18 percent in the past year. Palladium soared 71 percent. Both metals are used for pollution-control devices in cars and automakers such as Toyota Motor Corp. (7203) and Honda Motor Co. reduced production after the temblor and tsunami devastated northern Japan on March 11. The country represents 15 percent of world platinum demand, according to Johnson Matthey Plc. (JMAT)

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