Bloomberg reported yesterday that platinum took its biggest fall in three months on news that South African miners may be making progress in an ongoing dispute with workers. Platinum futures for April delivery dropped by 2 percent to $1,400.70 an ounce on the New York Mercantile Exchange, according to Bloomberg.
Articles Tagged "platinum price"
Although platinum and palladium saw price drops on Monday, CNBC has pointed to a broader 5-percent jump in year-to-date platinum futures prices as well as a 7-percent price jump for its sister metal.
Frik Els of Mining.com reported that platinum prices fell by more than $20 per ounce on Monday while palladium prices also declined. According to mining, prices for the metals are not reacting as expected to supply squeezes from Russia and South Africa, especially in light of revived demand from the European automobile industry.
Striking at the operations of South Africa's three major platinum miners is negatively impacting everything from the miners' profits to local businesses. Prices, however, have thus far been largely exempt.
Mineweb reported yesterday that analysts are raising the possibility that strikes at the operations of South Africa's major platinum miners will push prices for the metal up.
Reuters reported yesterday that while thus far striking at major South Africa-based platinum mines has had little effect on prices for the metal, that could change if production is halted for long enough. The tipping point will be the exhaustion of aboveground platinum stockpiles.
Mining Weekly reported that last week, the NewPlat ETF, which tracks the rand-denominated platinum price, recorded its largest outflow ever after prices for the metal hit a five-and-a-half-year high.
Explaining why platinum prices have seen little movement even as operations at South Africa's three main producers of the metal are impacted by strikes, Shanghai Metals Market quotes a Barclays plc (NYSE:BCS) research note that states that stockpiles of the metal are limiting price action.
Frank Holmes, CEO of US Global Investors, says the growing demand for fuel-efficient cars, along with supply disruptions, will cause platinum-group metals to trade higher in 2014.
Reuters reported that members of South Africa's Association of Mineworkers and Construction Workers (AMCU) have voted in favor of going on strike at Anglo American Platinum Ltd. (OTCMKTS:AGPPY), Lonmin plc (LSE:LMI) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY).