New opportunities for platinum price growth

27 April 2023 157
New opportunities for platinum price growth

Falling output at the world's largest platinum refinery could affect the price of this metal. 


Production volume of refined platinum group metals (PGMs) at Anglo American Platinum (Amplats) decreased by 13% in the first quarter of 2023. Production of PGMs fell from 718,500 ounces to 626,000 ounces due to a power outage that lasted for 13 working days, which is equivalent to 26,500 ounces of PGMs.


The main reason for the decline is the commissioning of the smelter in Polokwane, South Africa after it was refurbished at the end of January this year.


Sales volumes of PGMs at Amplant also dropped. They fell by 17% to 698,600 ounces due to lower processing volumes. The average selling price of a precious metals basket in the first quarter was lower compared with the same period last year due to decreased market prices.


Despite this situation, the production forecast for 2023 is still between 3.6 and 4 million ounces of refined PGMs.

Reduced production and sales could result in higher demand for the metal and, consequently, higher market prices. However, the Amplats’ remaining production forecast for refined PGM production in 2023 may mitigate the overall impact on the market.


US GDP data is published today at 12:30 GMT. America is considered one of the world's top platinum consumers and the largest consumer of this metal in the automobile industry. GDP growth will indicate an improvement in the industrial sector and the whole economy. The price of the metal may rise in the short term against this background.   


The price went beyond the H1 timeframe uptrend, creating several new waves. The price forms the third ascending wave on the M15 timeframe. Breaking through the top of the first wave at 1123.0 will strengthen the signal for growth.


Signal:

Long-term prospects for platinum are purchasing.

Target is at the level of 1150.0.

Part of the profit should be fixed around the level of 1123.0.

Stop-loss is around the level of 1092.0.

The bullish trend is short-term, so choose a trading volume of no more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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