Platinum prices are on the rise despite the metal falling out of favor due to tight supplies in the market. The demand for platinum, which is used in catalytic converters for petrol engines, was expected to decrease as more drivers switch to electric cars. However, prices have recently rebounded after a significant drop earlier in the year.
Analysts believe that the outlook for platinum is brighter, with mining companies seeing a potential turnaround in the market. London-listed Anglo American, one of the major producers of platinum, is looking to shift its focus towards copper, following a strategy similar to Australian rival BHP.
BHP is facing a deadline to increase its bid for Anglo American, which has been rejected twice already. As part of the takeover bid, BHP aims to split off Anglo American Platinum, a key subsidiary that produces platinum group metals in South Africa and Zimbabwe.
Despite the decline in demand for platinum, the metal’s prices have been increasing recently. This is due to the prospect of a supply deficit in the coming years, with demand expected to outpace supply by a significant margin. Declining output in major producers like South Africa and Russia has contributed to the tight supply situation.
In light of the increasing demand for copper, global mining companies are shifting their focus towards the industrial metal, which is essential for AI technology and renewable energy infrastructure. With the market dynamics changing, companies like Anglo American are looking to capitalize on the growing demand for copper and position themselves for future growth.
