Morning Bites

🇿🇦South Africa’s PGM mining output grew 3% YoY in October, after the 7% YoY gain in September, according to official statistics. Meanwhile, gold production shrank 3% YoY, after the 4% YoY decline in September. In our view, the ongoing monetary easing cycle in the EU/US and China, and the increase in EU import duties on Chinese BEVs (from 10% up to 45%), as well as the continuous global Pd/Pt market deficit, might trigger a recovery in PGM prices in 2025

Moreover, according to Reuters, the new US administration is planning to cancel the USD 7,500 tax credit for EV purchases as part of the tax reform legislation. This move, if it materialised, would negatively affect local BEV sales (similar to Germany's case), which is a favourable factor for PGM market fundamentals, we believe

SA accounts for ~70% of global Pt, 38% of Pd supply and 3% of world gold production

#PGMs #gold        
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