Hi Pj
PLA AQP also on the hit list. 09/10 looks like it will be bright/er for platinum.
Johnson Matthey analyst 'optimistic' for 2009 platinum demand 27th November 2008
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Read more about the platinum group metals markets in Johnson Matthey's bi-annual reviews click here.
A senior figure at platinum refiner Johnson Matthey has today (27th November) explained that there is little chance that demand for platinum will plummet next year.
The precious metal is currently trading at around $866 per oz, a considerable slump compared to the first half of 2008, when it broke through the $2,220 per oz barrier.
However, Alison Cowley, Principal Market Analyst for the firm, has explained that a number of factors mean that there is no fundamental reason for demand to drop further in 2009.
In particular, she noted that new cleaner emissions auto industry regulations coming into force next year in Europe will see huge numbers of vehicles fitted with diesel particulate filters.
In an interview with Creamer Media's Mining Weekly, she said: "Over 50 per cent of the European market is diesel so that will have a significant impact on demand.
"We are in a situation at the moment where people are focusing on all the negatives rather than the positives. What we're saying is that there's not going to be a collapse in demand by any means."
While the auto market in North America is undoubtedly on the slide, Ms Cowley described it as a "relatively small consumer of platinum" and noted the continued emergence of the Indian and Chinese markets.
In addition, she also explained that she expects demand for platinum jewellery to recover strongly next year after the company recorded two strong months of activity on the Shanghai Gold Exchange.
She said: "Jewellers in China are starting to build their stocks of manufactured platinum pieces and going into 2009 we would expect that the lower prices will begin to have quite a strong effect on consumer demand."
Ms Cowley also expressed her belief that platinum supplies will be boosted in South Africa next year as mines at Smokey Hills, Blue Ridge and Pilanesberg enter their first year of significant production.
Johnson Matthey recently issued its Platinum 2008 Interim Review, in which it predicted that the platinum price will be between $700 per oz and $1,400 per oz next year.
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