"With no end in sight to the South African power crisis it is difficult to be anything but bullish, with platinum potentially able to gain a further $600-$800 over the next 2 to 3 months," said James Moore, analyst at http://thebulliondesk.com/" target="_blank">TheBullionDesk.com.
Aluminium rose more than 4 percent to a 7-month high on the London Metal Exchange, driven by fears of reduced supply owing to power shortages in South Africa and China. [ID:nL14660732]
WIDENING DEFICIT
Analysts say the platinum deficit could widen to more than 400,000 ounces by the end of 2008, compared with about 265,000 ounces in 2007. The market had a surplus of 65,000 ounces in 2006 following seven successive years of deficits.
Impala Platinum (IMPJ.J: http://uk.reuters.com/stocks/quote?s... " target="_blank" rel="nofollow">Quote, http://uk.reuters.com/stocks/company... " target="_blank" rel="nofollow">Profile, http://uk.reuters.com/stocks/researc... " target="_blank" rel="nofollow">Research), the world's second biggest platinum producer, said its output in the full year to end-June would decline to just under 2 million ounces, compared to 2.026 million ounces in 2007, due to the power crisis. [ID:nL14475320]
Other producers have also lowered forecasts. Anglo Platinum (AMSJ.J: http://uk.reuters.com/stocks/quote?s... " target="_blank" rel="nofollow">Quote, http://uk.reuters.com/stocks/company... " target="_blank" rel="nofollow">Profile, http://uk.reuters.com/stocks/researc... " target="_blank" rel="nofollow">Research), the world's top producer, said this week electricity problem alone would cut output by 120,000 ounces in 2008, and had cost 30,000 ounces in lost output since January.
Production at South Africa's Northam Platinum (NHMJ.J: http://uk.reuters.com/stocks/quote?s... " target="_blank" rel="nofollow">Quote, http://uk.reuters.com/stocks/company... " target="_blank" rel="nofollow">Profile, http://uk.reuters.com/stocks/researc... " target="_blank" rel="nofollow">Research) fell 16.5 percent to 150,755 ounces during the first half from July to December. For the second half to end-June, it said production would match the first half if the electricity crisis restricted the company to continue using 90 percent of normal power.
Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo, said automakers were accumulating platinum stocks to last up to six months on fears of further price rises.
"Automobile companies are rushing to buy platinum.
