Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Platinum price boost as top producer shuts down smelter

Platinum price boost as top producer shuts down smelter

Platinum futures trading on the Nymex market in New York jumped 1.6% to $1,058.70 an ounce on Tuesday after top platinum producer Anglo American Platinum announced it's shutting down a smelter responsible for one fifth of its refined platinum output capacity.

In a statement  Amplats said it is bringing forward the rebuild of its Waterval smelter after a furnace leak and that it would take up to four months to bring the plant back up to full capacity:

"The concentrate that would be treated at the furnace could not be treated elsewhere in the company because its other furnaces were running at full capacity, which meant the metal stockpiled in the concentrate would be released in the future, it said.
The company's mined production guidance for metal in concentrate of 2.3 million to 2.4 million ounces for the current year will not be affected by the shutdown the company said.

Year to date the platinum price is up more than 22%  thanks to predictions of another annual market deficit and the threat of labour action in South Africa which is responsible for 73% of global annual supply.

In its latest quarterly report the World Platinum Investment Council adjusted the supply deficit forecast for 2016 upwards by 16% or 65,000 ounces to 520,000 ounces, from 455,000 ounces previously, mostly on the back of lower than expected recycling growth. 2016 is set to the fifth annual year of market shortages for platinum, used mainly in jewellery and autocatalysts.

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