Mitsubishi Corporation International (MCI) says in its latest precious metals update that it expects South Africa’s platinum supply to reduce by around 7%, or by between 200 000 oz and 300 000 oz, in light of closed operations during South Africa’s 21-day national lockdown.
The announcement by government that it will be forcing almost all mining operations to close down has led to a surge in buying interest across the platinum group metals complex, which led to the platinum forward market moving into backwardation for the first time in more than a decade.