A platinum producer in South Africa has cut its annual output forecast for the third time. Lonmin Plc said the full-year platinum output from its concentrators has fallen 16% in the year ending Sept. 30. The company had expected production to improve going into 2009, says Ron Derby for Bloomberg.
South African mines have been plagued all year by production interruptions, caused by a failure of the state-owned power company to meet demand.
Platinum prices have fallen 46% this year, but has gained along with palladium in recent days as precious metals demand rises, says Halia Pavliva for Bloomberg. Until recently, palladium was down 51% for this year.
Car makers account for 60% of global platinum use, and a struggling auto industry is leading lower demand for the metal.
Among funds that migh be affected:
- PowerShares DB Base Metals (DBB), down 27.9% year-to-date
- PowerShares DB Precious Metals (DBP), down 15.1% year-to-date
