HSBC cuts platinium from $1,875 to$1775; Palladium from $810 to$785

Platinum group metals are likely to rally in 2012 mainly due to supply tightness, although the bank has lowered its price forecasts after a weak fourth quarter, said HSBC in a research note.

According to HSBC, platinum mine supply increases in South Africa are limited due to many factors, including power shortages, insufficient technical expertise and rising costs. Limited Russian production and dwindling stockpiles should support palladium.

A recovery in auto sales, as forecast by HSBC automotive research, and moderate growth in industrial production, estimated by HSBC macroeconomic research, also should help sustain PGM prices.

Still, for platinum, HSBC lowered its average price forecast for 2012 to $1,775 an ounce from $1,875. It maintained 2013 and long-term forecasts of $1,825 and $1,800, respectively, and introduced a 2014 forecast of $1,800.

For palladium, the bank cut its average price forecast for 2012 to $785 from $810, while leaving 2013 and long-term average forecasts unchanged at $825 and $850, respectively. Analysts introduced a 2014 forecast of $835.

“We anticipate wide trading ranges in 2012 of $1,375-1,975/oz for Platinum and $600-900/oz for palladium,” HSBC concluded. – CommodityOnline

Tags: platinum, platinum futures, platinum futures prices, platinum price, platinum price 2012, platinum prices

Posted by admin on Jan 6 2012. Filed under Palladium, Platinum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry