(recasts, adds quotes, changes prices, pvs SINGAPORE)
By Atul Prakash
LONDON, Feb 14 (Reuters) - Platinum hit a record high for
the 11th straight day on Thursday as a deepening power crisis in
top producer South Africa forced another miner to forecast lower
output and prompted investors to snap up the metal.
Spot platinum <XPT=> jumped to a high of $2,025 an ounce
before dipping to $2,000/2,005 at 1109 GMT, against $1,985/1,995
late in New York on Wednesday. The metal has jumped 33 percent
this year on the top of 37 percent surge in 2007.
The power crisis in South Africa, which accounts for 80
percent of global platinum output, continued to affect mining
operations. Mines were shut for five days in late January and
are now getting only 90 percent of normal electricity supply.
"Definitely the situation is serious and this is getting
reflected in the price. We will have shortages this year and
probably the next year," said Frederic Panizzutti, precious
metals analyst at MKS Finance.
"The supply-demand balance was already extremely tight. What
has happened recently and what is going to happen for the next
two to three years are definitely going to widen the gap and
additional shortages are going to tighten the market further."
State utility Eskom is considering a complete power supply
buy-back from all of the country's aluminium smelters plus one
in Mozambique for the balance of 2008 as part of a multi-strand
approach to solve the country's power crisis, senior sources
close to Eskom told Reuters. []
Eskom is due to hold a press briefing at 1200 GMT at which
the utility will explain its multi-strand approach, which will
involve reducing power demand among all industrial consumers and
better managing its generation and fuel supply, they said.
"With no end in sight to the South African power crisis it
is difficult to be anything but bullish, with platinum
potentially able to gain a further $600-$800 over the next 2 to
3 months," said James Moore, analyst at TheBullionDesk.com.
Aluminium rose more than 4 percent to a 7-month high on the
London Metal Exchange, driven by fears of reduced supply owing
to power shortages in South Africa and China. []
WIDENING DEFICIT
Analysts say the platinum deficit could widen to more than
400,000 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.
Impala Platinum <IMPJ.J>, the world's second biggest
platinum producer, said its output in the full year to end-June
would decline to just under 2 million ounces, compared to 2.026
million ounces in 2007, due to the power crisis. []
Other producers have also lowered forecasts. Anglo Platinum
<AMSJ.J>, the world's top producer, said this week electricity
problem alone would cut output by 120,000 ounces in 2008, and
had cost 30,000 ounces in lost output since January.
Production at South Africa's Northam Platinum <NHMJ.J> fell
16.5 percent to 150,755 ounces during the first half from July
to December. For the second half to end-June, it said production
would match the first half if the electricity crisis restricted
the company to continue using 90 percent of normal power.
Yukuji Sonoda, precious metals analyst at Daiichi
Commodities in Tokyo, said automakers were accumulating platinum
stocks to last up to six months on fears of further price rises.
"Automobile companies are rushing to buy platinum. That's
the most important point. They are unwillingly buying platinum
ingots," he said, also pointing to investor purchases.
In other metals, gold gained to hover below a record high of
$936.50 hit in early February. Spot metal <XAU=> was last quoted
at $910.10/911.00 an ounce, against $906.70/907.50 in New York.
Industry-sponsored World Gold Council said on Wednesday
global gold demand in the fourth quarter fell 17 percent
year-on-year to 843.0 tonnes because of a sharp drop in
jewellery buying by top consumer India. []
Palladium <XPD=> rose to $436/440 an ounce from $430/435,
while silver <XAG=> edged up to $17.30/17.35 an ounce from
$17.28/17.33 in New York.
(Additional reporting by Lewa Pardomuan in Singapore)
(Reporting by Atul Prakash; editing by David Evans)
