HomeNewsPlatinum may rise despite strike concluding

Platinum may rise despite strike concluding

According to a report by Bank of America Merrill Lynch, the price of platinum may continue to rise as the supply of the commodity is expected to remain tight for the next three months while production is being ramped up.

Following the five-month strike in South Africa’s platinum sector platinum prices have soared to eight-month highs, while palladium is at its highest in more than thirteen years. The report found that this is due to the fact that there is less incentive for producers to keep prices from rising.

Had prices soared at the time, striking workers would have been able to argue that the mining giants Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin were making enough money on the more expensive metals to meet the demands of the Association of Mineworkers and Construction Union (Amcu).

With the end of the country’s longest and costliest strike, “this cap on rallies has been removed,” BofA Merrill Lynch analysts said in a note to clients.

Top Stories:
Platinum may rise despite strike concluding
Strike action still severely threatens SA’s economy
Anglo American plans $4bn platinum mine sales


Comments are closed.