Carmakers’ $7 Billion Platinum Purchases Shrink Supply Glut: Commodities

Bloomberg reported carmakers will use a record $7 billion of platinum in catalytic converters next year, diminishing a glut even as production declines.

As quoted in the market news:

About 3.82 million ounces will go into auto catalysts, 17 percent more than this year and the most since 2007, Morgan Stanley estimates. Supply will exceed demand by 81,000 ounces, down from 295,000 ounces, as output contracts 1 percent, according to Barclays Capital. Prices that fell 13 percent this year will average $1,845 an ounce in the fourth quarter of 2012, 19 percent more than now, the median of 12 analyst estimates compiled by Bloomberg shows.

Click here to read the full Bloomberg report.