Plans by the world’s largest platinum-mining company to sell its loss-making operations could be just what the industry needs.
The biggest producers, including Anglo American Platinum Ltd., have been using profitable assets to subsidize marginal shafts for too long, boosting output and depressing metal prices, Des Kilalea, an analyst at RBC Capital Markets, told Bloomberg News. The plan by Amplats, as the Johannesburg-based unit of Anglo American Plc is known, to sell 4 mines will force new owners to either make the shafts more efficient or close them, he said.
Following a three-day flat streak, the price of US platinum bar dropped by 2.2% to end at $1,312 per ounce on Thursday, September 25. Chinese platinum bar ended the day at CNY 277.00 ($45.14) per gram, after the 1.4% drop yesterday. Japanese platinum bar gained 0.2% to finish at JPY 4,679 ($42.81) per gram.
The price of Chinese palladium bar declined 0.6% to CNY 179.00 ($29.17) per gram. At $814.00, the price of US palladium bar finished the market day up 0.2% per ounce. Japanese palladium bar closed 0.2% lower at JPY 2,935 ($26.85) per gram.
The price of Indian gold bullion changed direction with a 0.7% drop. After two days of improving prices, the metal finished at INR 26,654 ($438.27) per 10 grams. Following two days of rising prices, the price of Chinese gold bullion dropped 0.6% to CNY 240.49 ($39.19) per gram. After a 0.6% increase, Japanese gold bullion finished the day at JPY 4,269 ($39.06) per gram. At $1,217 per ounce, US gold bullion fell 0.5% on Thursday.
The price of Indian silver declined 1.0% to INR 39,090 ($642.76) per kilogram, after two days of improvement. The price of Chinese silver fell 0.6% to CNY 3,860 ($629.00) per kilogram. Japanese silver finished the day down 0.6% to JPY 618.00 ($5.65) per 10 grams. US silver prices saw a 0.6% decline to $17.68 per ounce.