Morning Bites (part 2)

🇿🇦South Africa’s PGM mining output declined a further 5% YoY in December, after the 22% YoY drop in November. Meanwhile, the country’s gold production shrank 3% YoY, slightly decelerating from the -5% YoY in November. We note that electricity shortages, logistical issues and inflationary pressures keep affecting domestic production. Furthermore, according to Bloomberg, the electricity crunch and blackouts are expected to last at least two more years. Hence, in our view, the continuous production disruptions are supportive for PGMs and gold prices, given South Africa accounts for ~70% and 38% of global platinum and palladium supply, respectively (and 3% of gold output). However, as of today, we do not see substantial growth triggers in Pd/Pt prices, mostly amid the weak prospects for automotive demand

#PGMs #gold
https://metals-wire.com:3000/news-reports