“Platinum rallied to the highest price in almost four months on concern output in South Africa continues to struggle amid rising demand. Gold fell as the U.S. dollar strengthened.
Anglo American Platinum Ltd. (AMS), the world’s biggest producer, today reported a loss for 2012 as output of refined metal dropped 8.8 percent while costs surged and warned “supply challenges” will continue this year. Global platinum supply fell 10 percent last year because of strikes, stoppages and shaft closings in South Africa, which accounts for 72 percent of global output, Johnson Matthey Plc estimates.
“The South African supply pipeline will remain rather unreliable over the course of the year,”Edward Meir, an analyst at INTL FCStone Inc. in New York, wrote in a report e- mailed today. “More importantly, platinum is expected to be in deficit this year, with demand expected to remain strong on account of strong car sales we are seeing in a number of markets.”
Platinum for immediate delivery increased 0.9 percent to $1,698.28 an ounce by 10:44 a.m. inLondon. It jumped as much as 1.5 percent to $1,708.19 an ounce, the highest price since Oct. 9. Gold for immediate delivery fell 0.1 percent to $1,665.49 an ounce.
Platinum and related metals may have so-called price spikes this year and next on growing demand and a lack of investment in mines, JPMorgan Chase & Co. said on Jan. 31. Autocatalysts account for 33 percent of global demand, while industrial applications make up 28 percent of usage, according to Johnson Matthey.
