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The newly launched physically backed ETF in South Africa has recorded fresh demand exceeding 190koz. Collectively, platinum ETP holdings are at a fresh record high, surpassing 2Moz. Yet, the platinum price has yet to ..

11 May 2013

LONDON (Commodity Online): Platinum and palladium markets may witness deficits in 2013 and continue with the trend in 2014 as the challenging mine supply backdrop overshadows the modest recovery in demand anticipated for later in the year, stated London based Barclays in its recent market analysis.

Although the bank does not expect that the production losses to the magnitude suffered last year. Given the pick-up in recycling toward the end of last year, Barclays sees scope for supply to be revised up from the preliminary estimates released in November.

The newly launched physically backed ETF in South Africa has recorded fresh demand exceeding 190koz. Collectively, platinum ETP holdings are at a fresh record high, surpassing 2Moz. Yet, the platinum price has yet to meaningfully break above $1500/oz, suggesting that underlying fabrication demand remains weak or stock levels are healthy.

Indeed, Nymex platinum stocks continue to scale record highs while EU car registrations fell by 16% y/y in March. Although prices have stabilised, the issues have not gone away.

“We believe platinum offers the most upside potential in the near term given auto demand in Europe is expected to decline at a slower pace in H2 13; but, more important, biennial wage negotiations are set to take place over the coming weeks,” noted Barclays.


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