PLATINUM output from Zimbabwe is forecast to remain stable this year as the global demand is seen growing 3% to +226koz( thousand ounces), NewsDay Business can report.
This is coming at a time when the Exchange Traded Funds (ETFs) holdings are expected to remain net positive while Chinese large bar sales are seen growing.
A report released by the World Platinum Council (WPC) yesterday showed that while the platinum group metals (PGMs) basket price has settled somewhat, the low-price environment will continue to weigh on the mining industry.
For the full year, WPC projects a 2% contraction in mine supply which will be partially offset by a weak but gradually recovering recycling sector.
“Global supply is expected to reach 7,089 koz, down 1% year-on-year (-71 koz),” WPC said.
“Platinum demand is set to grow by 3% year on-year (+226 koz) to 8,118 koz, as we now expect ETF holdings to remain net positive, while Chinese large bar sales will grow.
“North American supply is expected to remain flat, with modest growth anticipated from Sibanye-Stillwater’s US operations as it recovers from the 2023 shaft incident.
“This growth is expected to be offset by a decrease in by-product output from Canadian nickel mining. Output from Zimbabwe is forecast to remain stable this year.”
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During the second quarter of the year, WPC said Zimbabwe’s output remained stable year-on-year at 125 koz, as a decline at Zimplats was offset by growth at Unki.
In Russia, the council said, production fell by 5% year-on-year to 181 koz, primarily due to lower platinum content in Nornickel’s PGM ore sources.
“The company is currently undertaking maintenance on Furnace # 2 at the Nadezhda Metallurgical Plant, with the impact on platinum production expected to be reflected in the second half of the year,” the council said.
“Total mine supply is forecast to decline by 2% year-on-year to 5,508 koz in 2024. Barring the one-off impacts from protracted strikes in 2014 and COVID in 2020, total mine supply in 2024 is expected to be at its lowest level within our time series dating back to 2013.”
Notably, WPC said refined production was expected to be lower across each of South Africa, Zimbabwe, Russia and North America.
South African output is expected to be negatively impacted by announced restructuring plans, shaft/section closures and slower than previously expected production ramp-ups.
WPC added that the persistence of higher-for-longer interest rates, ongoing political uncertainty and ambiguity in regulation aimed at finding the most sustainable and economically viable pathways for energy transition were impacting both consumer sentiment and commodity markets.
