(Updates prices)
SINGAPORE, Feb 19 (Reuters) - Platinum roared to a record
high for the 14th straight session on Tuesday, topping $2,100
an ounce on fears of tight supply after power problems in main
producer South Africa disrupted mining.
Spot platinum <XPT=> hit a high of $2,124 an ounce, up from
$2,105/2,115 an ounce late in London on Monday. The metal has
gained more than 30 percent this year on speculative buying
ignited by worries of a widening supply and demand gap.
"We don't know when it's going to stop," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong.
"But of course it's rising so fast. It's not healthy. It
can't sustain the high level if there's no real demand. It's
only speculative buying," said Leung, referring to a possible
correction.
Analysts say the global platinum deficit could widen to
400,000 to 500,000 ounces by the end of 2008, compared with
about 265,000 ounces in 2007. The market had a surplus of
65,000 ounces in 2006, following seven successive years of
deficits.
The world's No. 1 producer Anglo Platinum <AMSJ.J> has said
the power problem alone would cut output by 120,000 ounces in
2008, while Impala Platinum <IMPJ.J>, the world's No. 2
producer, forecast "very tight market conditions."
Japanese platinum futures were also at record highs. The
most active December contract <0#JPL:> on the Tokyo Commodity
Exchange surged 202 yen per gram to 7,103 yen.
"The platinum market has already been worried about
supplies in South Africa and this power problem emerged to
trigger more buying because we all knew this won't be resolved
easily," said Hisaaki Tasaka, a market analyst at Ace Koeki in
Tokyo.
"But at the moment, we are not seeing an actual shortage in
supplies as lease rates have not surged," Tasaka said.
While speculative buying drove up the price, some dealers
in Japan said platinum lease rates had been steady at 9 percent
since January. Lease rates usually rise when there is a
shortage in the physical market.
Platinum's major industrial use is in catalysts,
particularly in diesel vehicle catalysts, as it helps cleanse
environmentally damaging fumes from motor exhausts. It's also
used in jewellery.
Sister metal palladium <XPD=> hit a bid high of $473 an
ounce, its highest level in more than six years, up from
$466/470 an ounce.
Gold <XAU=> rose to $906.40/907.20 an ounce from
$903.00/903.80 an ounce late in London, off a record high of
$936.50 an ounce hit in early February.
"I think it's still consolidating at $890 to $920 for a
while, and then see what happens," said Leung of Lee Cheong
Gold Dealers, adding that the physical market saw some buying
from jewellers in Thailand.
Silver <XAG=> edged up to $17.15/17.20 an ounce from
$17.00/17.05 an ounce.
Precious metals prices at 0431 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 907.50 2.20 +0.24 8.98
Spot Silver 17.15 0.07 +0.41 16.11
Spot Platinum 2119.00 19.00 +0.90 39.41
Spot Palladium 473.00 5.00 +1.07 28.53
TOCOM Gold 3177.00 14.00 +0.44 3.82
28256
TOCOM Platinum 7094.00 194.00 +2.81 32.87
34921
TOCOM Silver 601.00 4.20 +0.70 11.09
488
TOCOM Palladium 1681.00 75.00 +4.67 24.43
9783
Euro/Dollar 1.4662
Dollar/Yen 108.15
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
(Additional reporting Chikafumi Hodo in Tokyo)
