14th January 2013 Weekly Bulletin

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14th January 2013 Weekly Bulletin

Johnson Matthey London Base Prices at 0900 hrs, $/oz:

Pt Pd Rh
Monday 14th January 1,659.00 706.00 1,080.00
Tuesday 15th January 1,694.00 714.00 1,080.00
Wednesday 16th January 1,684.00 715.00 1,100.00
Thursday 17th January 1,684.00 722.00 1,100.00
Friday 18th January 1,702.00 732.00 1,150.00

A long-awaited restructuring plan announced by Anglo American Platinum (AAP) on Tuesday was the trigger for much price action in the pgm markets. Both platinum and palladium reached multi-month highs and platinum regained a premium over gold. Profit-taking tempered the rally in spot prices mid-week, and news of the end of a brief illegal strike at Anglo took the wind out of a further speculative rally. By Friday signs of recovery in the US economy, including a strong pick-up in the rate of US new housing starts and lower jobless claims, helped propel commodity prices higher.


In the results of its year-long strategic review, AAP announced the closure of four shafts in the Rustenburg area and the preparation for sale of its Union mine, resulting in a fall in planned platinum output by 400,000 oz. The news, generally in line with expectations, was welcomed by the market as a sign that South African miners are dealing with unprofitable operations and moving towards a smaller, more viable mining sector. The ensuing price rally saw platinum trade above $1,700, a 3-month high, and reassert a premium over gold for the first time since March 2012.


Palladium prices were also on an upwards trend this week, benefitting from a further improvement in the fundamental outlook as a result of South African mine restructuring. By Friday, the Johnson Matthey Base Price was $732, the highest since September 2011.


Rhodium moved higher this week on a combination of short covering and speculative buying in the light of the Anglo announcement as well as decent physical demand in Asia. By Friday, rhodium was trading at a two-month high of $1,150.

Johnson Matthey,  
Orchard Road,  Royston, 
Hertfordshire SG8 5HE, 
United Kingdom