Youhong commerce and trade

British metal focus believes that 80% of the global platinum supply comes from South Africa and Zimbabwe with confinement measures; At present, Zimbabwe's operation has been granted a special exemption policy and can continue production, but its production will still be limited due to its dependence on South African refineries. In addition, nearly half of the world's platinum ore production comes from labor-intensive production lines in South Africa, which will still be affected after the confinement period. If the epidemic cannot be effectively contained in the short term, the demand for platinum group metals in the automotive industry may decline significantly. Overall, the impact of supply interruption caused by the epidemic will be greater than the decline in demand in the jewelry and automobile industries.

The market supply surplus of the platinum market will ease this year. However, this is still the main restraining factor for the rise of platinum price. It is expected that the main driving force for the rise of platinum price this year will be the spillover effect of the rise of gold price. In contrast, the epidemic has little impact on palladium supply, but it has greatly reduced the demand for palladium in the automotive industry. It is expected that the market supply shortage exposure of palladium will be reduced this year. However, persistent structural shortages are likely to support prices to continue to rise.

According to: China platinum network