Platinum could also face pressure due to renew political pressure on diesel technology, a primary end market for the metal.
“Analysts at Metals Focus expect a surplus of 40,000 ounces in 2018 in the roughly 8 million ounce a year platinum market. Johnson Matthey predicts for this year a larger oversupply of 316,000 ounces, the biggest since 2011,” reports Reuters. “The average production cash cost in South Africa – a measure of direct expenses such as labour, fuel and electricity – was $834 an ounce last year, according to Metals Focus.”
Data suggest professional speculators with short bets on platinum outnumber longs for the first time in 17 years. PPLT resides more than 15% below its 200-day moving average.
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