Labor strikes could affect short-term supply from South Africa. Due to the steady decline in platinum prices, platinum producers have had to cut costs, and South African miners have expressed greater unrest, including a five-month strike last year.
The World Platinum Investment Council calculates a supply shortfall in platinum of 190,000 to 445,000 troy ounces for 2015, or half the 2014 deficit of 785,000 ounces. The total supply woulc rise by 9% this year to 7.9 million ounces due to a recovery in South African mine production from 2014 strikes.
However, Anglo American Platinum Ltd. recently stated that protest in South Africa disrupted operations at its largest and most profitable mines after locals demanded employment and provision of infrastructure, reports Andre Janse Van Vuuren for Bloomberg.
“The situation is still tense and many of the roads around the mine remain blocked,” police spokeswoman Ronel Otto told Bloomberg.
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Max Chen contributed to this article.