Platinum prices forecast to drop on 2010 oversupply
GFMS analyst says platinum supply will grow faster than demand next year
Dave Hannon -- Purchasing, 10/14/2009 1:21:16 PM
"Next year it will be certainly a surplus again," GFMS analyst Peter Ryan tells Bloomberg today in assessing the platinum market.
Despite the oversupply, platinum prices may in fact increase next year due to investor involvement in the market. Earlier this year, Bank of America/Merrill Lynch Research has raised its 2010 forecast for platinum prices to an average $1,350/oz from $1,250 previously.
But not all platinum market experts are forecasting 2010 oversupply. Bloomberg reports that Lonmin, the third-biggest platinum producer, forecast a "small surplus" in global supplies this year before the market moves into balance next year and into deficit in 2011 and 2012, according to a presentation on its Web site yesterday.
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