Platinum demand in 2002 will exceed supply for the fourth year running but demand for Palladium is heading for an 8-year low, according to Johnson Matthey's Platinum 2002 Interim Review, out today.
Led by the increasing strength of demand for Platinum jewellery in China, total demand for Platinum is expected to rise by 2.9% in 2002 to 6.37 million oz. Purchases of Platinum by the auto industry, industrial users and investors will be broadly similar to the 2001 level. Increased shipments arising from South African mine expansions are likely to be offset by a lower level of Russian sales, raising total supply marginally to 5.88 million oz and leaving the market in deficit by 490,000 oz.
The Platinum Price has risen in a series of rallies since January 2002 to reach $598 in mid-October, driven largely by the fundamental strength of demand. Although the economic outlook remains uncertain, the physical market should remain tight and Johnson Matthey forecasts that Platinum will trade between $550 and $650 per oz during the next six monthswww.
Contact:
(please credit europastar.com)

Source:
November 2002