Amplats CEO says metal prices to recover 15% to 20%
Amplats CEO says metal prices to recover 15% to 20%
By David McKay
PLATINUM group metals (PGM) would recover 15% to 20% their current price levels as “some of the floor” in the basket price had been reached, said Craig Miller, CEO of Anglo American Platinum (Amplats).
“We have probably got to some of the floor in the short term, but there will be more volatility, absolutely,” he said. “A 15% to 20% recovery is where we are at. Platinum will re-rate. I think palladium will remain under pressure; rhodium will rerate in some form,” Miller said in an interview at the Joburg Indaba last week.
He said Amplats had always expected prices to weaken from 2021 and 2022 when palladium and rhodium, by-products of platinum mining, reached $3,000 and $28,000 per ounce respectively. But the extent of the correction had surprised Miller.
Destocking, especially after panic buying of palladium in the wake of the invasion of Ukraine by Russia, which is the world’s largest producer of the metal, had been the main reason for the price weakness of that metal this year.
There were also concerns regarding automotive production considering poor world economic growth conditions. However, Miller said deficits in all three metals would start to apply some upward pressure on prices.
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