South Africa Losing its Hold on the Platinum Market

BDlive reported that while South Africa is the largest source of platinum in the world, supply from other locations — as well as from recycling — has lessened the country’s influence on the platinum market.

As quoted in the market news:

South Africa provides three-quarters of the world’s platinum, but its role in shaping the market is diminishing, [Stephen Forrest, director and chairman of SFA Oxford] said. ‘You’d think such concentrated supply would be enough to secure a significant influence on price, but look closer and it’s clear that South Africa’s mighty market grasp is slipping.’

South Africa’s platinum supply as a percentage of demand has fallen from the 1980s when it supplied nearly all end-user demand for the metal in autocatalysts and jewellery.

‘Since 2009, South Africa’s platinum supply has fallen from more than 70% of demand to just 50% of demand in 2013. A significant drop indeed,’ Mr Forrest said.

‘In that time, supply has sprouted up in other places around the world,’ he said. ‘South Africa has been caught short. However you slice it, its influence on price, whether as a result of supply disruptions or higher costs, is reducing.’

Click here to read the full BDlive report.