Platinum miners forecast to maintain output despite risk of labour unrest

By Nizar Manek, 14 May 2013
(Financial Times) --
Investors in platinum hoping for a sustained bull run may be disappointed this year. Despite the labour unrest that keeps hitting South Africa’s miners, the biggest producers, supply and demand are pretty well balanced, says Johnson Matthey, the refiner in its annual review.
Even allowing for possible disruption, South African platinum output is expected to remain flat this year and Russian stockpiles – built up in the Soviet-era – are set to diminish. So, says Johnson Matthey, if investment demand grows a bit as it did last year, the global market for platinum may be in a “slight deficit” in 2013. That’s better than a glut, but given the general caution in precious metals markets, it’s unlikely to move prices much.
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