Miners face threat from falling prices

Zimbabwe’s mining firms will struggle to remain viable if the trend in falling prices of platinum group metals (PGM) persists, a leading research firm has warned.

In a research note, MMC Capital said the slowdown in China’s Gross Domestic Product and the stronger United States dollar had put pressure on commodities leading to a decline in prices.

China has been the major market driving demand for platinum jewellery and palladium-based auto-catalyst devices, among other commodities, and a slowdown in its growth has seen a substantial reduction in commodity imports by Chinese firms thus putting downward pressure on commodity prices, MMC said.

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