22 December 2014
   
New Zimbabwe Header
Mnangagwa’s ‘Mazoe Crush’ problem
Unity Day a Mugabe con, Dabengwa
Presidency: 'Gucci Grace' still in play
'Charlatan Dabengwa jealous of Mphoko'
Succession: It’s Karanga time, stupid!
Mugabe fires more Mujuru linked ministers
Vic Falls town drags residents to court
Mutare man kills, burns wife`s body
MORE NEWS
GMB offers workers maize as pay
AfrAsia Zim seeks to raise $15 million
MORE BUSINESS
2014’s top ten songs, according to AP
South Africa return for Formula One
MORE SHOWBIZ
Paper round-up: Torres for Liverpool?
Soccer star linked with City switch
MORE SPORTS
Zim entering the post-Mugabe era?
Beware of the dangers of the single story
MORE OPINION
 
A case of defending the indefensible
Hats off to VP Mnangagwa
MORE COLUMNISTS
 
 
Platinum prices climb on Zim worries
14/02/2013 00:00:00
by wsj.com
 
Zimplats land seizure ... Obert Mpofu
 
RELATED STORIES
Indigenisation: ZSE listing better, Zimplats
Zimplats reports US$65 million profit
Zimplats appeals land repossession
Unki mine payment blow for Brainworks
Zimplats vows to stick it out
Critics fail to back Zimplats claims: Moyo
Kasukuwere botched Zimplats deal: Mugabe

PALLADIUM futures settled at a 17-month high in midweek, while platinum marched higher, as traders continued to sift through reports of a potential supply disruption in Zimbabwe.

Palladium for March delivery, the most active contract, rose 65 cents, or 0.1%, to settle at $772.05 a troy ounce on the New York Mercantile Exchange. This was the highest settlement price since September 2011.

The most actively traded platinum contract, for April delivery, rose $12.50, or 0.7%, to settle at $1,729.70 a troy ounce on the Nymex. This is the highest settlement price since Feb. 6, when platinum touched its 2013 high of $1,736.50 a troy ounce.

Prices of both platinum group metals, or PGMs, continued to draw strength from news that the Zimbabwean government will seize nearly 28 hectares of land leased by platinum miner Zimplats Holdings Ltd. (ZIM.AU).

The measures are aimed at re-allocating assets to local businesses, but some analysts say the moves could disrupt production of platinum group metals, or PGMs, which includes platinum, palladium and rhodium.

"While PGM production from Zimbabwe pales in comparison to South Africa, it nonetheless reflects the tensions PGM miners face operating in the Southern African region," said James Steel, precious-metals analyst with HSBC. He added that prices of platinum and palladium are likely to move higher as a result.

Platinum and palladium prices have soared more than 10% so far this year, amid fears that mine closures in top supplier South Africa will lead to a shortage.

Platinum and palladium are mostly used to make car exhaust filters, known as catalytic converters.

Zimbabwe's platinum output puts it in third place, behind world leader South Africa, and second-place Russia according to Johnson Matthey, a specialty chemicals company which makes platinum and palladium coatings for the auto industry.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark
 
 
 
comments powered by Disqus
 
RSS NewsTicker