Zimbabwe’s platinum production for the first quarter of 2019 slid by a marginal 5 percent from 120 000 ounces in the previous quarter to 110 000 ounces.
According to the latest World Investment Platinum Council (WIPC) Platinum Quarterly, of the major platinum producers, Zimbabwe was the only country to record a decline in the period under review.
Global supply of refined platinum for the first quarter production rose 18% (+230koz) year-on-year to 1,525 koz in the first quarter of 2019.
This increase was mainly attributable to neighboring South Africa, where two unplanned furnace outages impacted refined production in the prior year period.
“South African output climbed by 21% (+195 koz) year-on-year to 1,105 koz. Smaller increases in output also occurred in North America (+10 koz, project ramp-up), Russia (+25 koz, planned rise in output for 2019) and other regions (+5 koz).
“There was a slight dip in output in Zimbabwe (-5 koz). Total mining supply is estimated at 1,530 koz for the first quarter, an increase of 245 koz (+19%) year-on-year,” said WIPC.
Zimbabwe’s performance in the first quarter was largely in line with overall production expectations for the current year.
Total global demand for platinum is expected to increase by 8% in 2019 on the back of a strong increase in investment demand. Supply is expected to rise by 4% this year. However, potential power disruptions and industrial action represent risks that could materially reduce South African mining supply during the year. With demand projected to increase more than supply, the annual 2019 market balance will narrow sharply to a surplus of 375 koz from the previously forecast surplus of 680 koz.
Commenting on the developments, WIPC chief executive Paul Wilson:
“Today’s report shows significant investment demand growth – an indication that platinum demand growth potential is finally outweighing long standing negative sentiment.
“The market may have previously underestimated the significant positive impact on platinum demand likely as more platinum is used in emissions control in gasoline cars and the prospect of more clean new diesels on the road. We publish today’s figures at the start of the hugely important annual Platinum Week in London.
“The marked turnaround by investors, that has been anticipated for several years yet failed to materialise, will be high on the agenda for most attendees. We believe this turnaround follows the combination of several demand growth signals, downside supply risk and rising price.”
“The opportunity for the global platinum market to grow remains undiminished. I have been personally encouraged by the number of leading global players keen to partner with us to deliver further platinum investment growth, particularly in the US and China.”