Norilsk Sees Africa Cutting Platinum Output

Bloomberg reported that OAO GMK Norilsk Nickel sees South Africa cutting platinum output in the coming years.

As quoted in the market news,

Production of platinum and palladium, which are mined from the same deposits and used in automobile catalytic converters, has been lower than demand since at least 2012. Opaque stockpiles held by hedge funds have contributed to price volatility, according to Norilsk.

Anton Berlin, head of strategic marketing at Norilsk, stated:

Investments in a vast amount of projects in South Africa were delayed and it’s hard to expect an increase in output in the region. Most likely, it will even fall.

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