Cape Town―Firm demand, fund interest and disappointing production growth by Anglo Platinum are keeping the platinum market firm and the outlook positive, according to the latest Platinum Sector Update by JP Morgan's Johannesburg-based analyst Steve Shepherd. "We think platinum will remain around $850/oz for the first half of this year before beginning to drift," Shepherd said. "We have upgraded our metal price forecast accordingly." The report states that palladium would benefit from solid auto catalyst market demand and reduced consumer destocking, and as a result palladium should advance beyond the $200/oz level toward $300/oz in the next year or two. The price continues to be determined by Russian sales behavior, Shepherd said, adding that a strong South African rand had led to an increase in his long-term price forecasts to $635/oz for platinum and $318/oz for palladium.
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