The Morgan Stanley Mining and Metals Tracker indicates that a platinum price recovery may be coming next year, as per Proactive Investors United Kingdom. The firm notes that Anglo American Platinum Ltd. (OTCMKTS:AGPPY) is on its way toward withdrawing 250,000 ounces of production from its Rustenburg facility, a move that will bring the market into deficit.
As quoted in the market news:
The broker notes the market’s reaction has been muted so far. Sizeable above ground stockpiles, the risk of accelerated growth in recycled material and uncertainty around demand from the jewellery and ETF (exchange traded funds) sector may help explain the wariness of investors.
‘The first factor is most significant, and under our base case assumptions, it could take up to a year to run above ground inventories down to normal levels and create price tension,’ said Morgan Stanley.
‘Nevertheless, the process of market re-balancing is underway. As a result the platinum price should recover.’