Platinum outlook cautious on heels of negative Euro truck market

The likelihood of weakening truck sales in Europe is dimming the outlook for platinum prices, UBS analyst Edel Tully warned Thursday. The precious metal is a key component in anti-pollution equipment used in heavy duty diesel engines, so the outlook for its price depends on how many trucks are made.

A UBS survey of truck buyers in the troubled European trading bloc revealed most respondents expect to buy fewer trucks in coming quarters. A smaller group, about 39 percent of respondents, expect their purchases to remain steady, indicating flat sales.

Based on survey results, the Swiss bank projects a 9.5 percent decline in the European truck market this year.

However, a positive outlook for North American truck sales is expected to cushion the effect on truck makers of the Eurozone’s economic downturn, Tully said.

Besides the overall decline in Europe’s economy, new emissions standards set to take effect January 2014 have also put a damper on sales, with 55 percent of respondents indicating they will delay new purchases until the new standards, known as Euro 6, take effect. European truckers also said they would skip buying Euro 5 trucks, with less than a quarter of respondents looking to take advantage of a lower price before more expensive Euro 6 trucks roll out.

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

Posted by admin on Jan 27 2012. Filed under Platinum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry