The platinum market is best understood through a comprehensive
analysis of supply and demand. Supply is most significantly affected by
production constraints and the erratic draw-down in Russian stockpiles.
Total world supply of platinum for 1998 amounted to 5.915 Moz, 64% of
which was produced from the Bushveld Complex in South Africa. The
remainder emanated from Russia, Zimbabwe, the United States, Canada
and the recycling of autocatalysts. Supply is forecast to drop by
320 000 oz in 1999 due to a lower Russian export quota and reduced
Zimbabwean production.
Demand for platinum is unusual, in that it is sought after both as a store of
wealth, and has properties that make it irreplaceable in a host of industrial
applications. Current world demand for the metal is driven by a growing
Eastern jewelry market and increased use in autocatalysts due to vehicle
emissions legislation. Total world demand for 1998 amounted to
5.755 Moz. A predicted steady growth in the consumption of platinum for
jewelry and existing applications, together with development of new uses,
is expected to result in an annual 250 000 oz increase in demand for 1999
and 2000.
The derived supply and demand balance for 1998 shows a small excess
in supply relative to demand. This will be absorbed by inventories and is
likely to have little affect on price, A significant shortfall of 410 000 oz,
however, is predicted for 1999. This is likely to be followed by a further
shortfall in 2000 and will drive up prices, impel consumers towards
substitution and thriving and encourage producers to expand.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/14702 |
| Date | 22 May 2014 |
| Creators | Mauve, Anton Christopher |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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