INTL FCStone Sees Platinum Pushing Higher During July
Johannesburg-S.A. (July 7) Platinum is likely to strengthen in July due to the combination of good demand and ongoing supply issues despite the end of a lengthy strike against three major South African producers, says INTL FCStone. The metal dipped in June as the strike ended but the decline was short-lived as investors concluded output may not return to normal before September. Meanwhile, South African mining companies are curtailing investment plans and prices have been helped by reports of possible labor action at utility Eskom. “In the meantime, demand for platinum remains strong against a backdrop of rising auto sales, with even platinum’s largest market – Europe – showing signs of life,” INTL FCStone says. “June car sales in 13 of 17 western European countries are running at an annualized rate of 11.93 million, this according LMC Automotive, a 3.3% increase over the 11.54 million registrations seen in 2013 and stand in stark contrast to the monthly sales declines we were seeing last year. Chinese and U.S. sales are also strong….Over the course of July, we see platinum pushing higher, with a $1,460-$1,540 trading range expected.” The firm sees sister metal palladium in an $830-910 range in July.