In trading on Wednesday, shares of Sibanye Stillwater Ltd (Symbol: SBSW) crossed above their 200 day moving average of $5.25, changing hands as high as $5.49 per share. Sibanye Stillwater Ltd shares are currently trading up about 7.2% on the day. The chart below shows the one
The US Bureau of Labor Statistics released its latest consumer price index (CPI) figures on Wednesday (May 15), showing that inflation cooled slightly in April, recording a year-over-year increase of 3.4 percent.That's down from March's 3.5 percent level and slightly closer to the US Federal Reserve's 2 percent target. On a monthly basis, inflation came in at 0.3 percent after stalling at 0.4 percent for the two previous months.At the start of the year, analysts believed inflation was cooling fast enough for the Fed to start making cuts as early as May; however, stagnating numbers later pushed their expectations to June and eventually to H2. Market watchers are now looking to September for the American central bank to make its first cut.At an event in Amsterdam on Tuesday (May 14), Fed Chair Jerome Powell said it's unlikely that more interest rate hikes are in the cards, although the central bank could leave them where they are. “I expect that inflation will move back down … on a monthly basis to levels that were more like the lower readings that we were having last year," he noted. Powell declined to comment on when rate cuts can be expected. CPI is a factor the Fed considers when making rate decisions, but other indicators will provide the Federal Open Market Committee with a deeper understanding of the state of the economy ahead of its next meeting on June 11 and 12.On the back of the CPI release, the gold price rose more than 1 percent in morning trading and inched closer to the US$2,400 per ounce mark, peaking at US$2,389.87 on Wednesday afternoon. The silver price also moved higher, gaining more than 3 percent to reach a high of US$29.72 during that same timeframe. The S&P 500 (INDEXSP:.INX), Nasdaq Composite (INDEXNASDAQ:.IXIC) and Dow Jones Industrial Average (INDEXDJX:.DJI) all reacted positively to the CPI news, seeing gains in the 1 percent range. Don't forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Anglo American (LSE:AAL,OTCQX:AAUKF) announced plans to divest its De Beers diamond business as it moves to restructure in the face of a takeover bid from rival miner BHP (ASX:BHP,LSE:BHP,NYSE:BHP).In a Tuesday (May 14) press release, the company said it wants to streamline its operations and focus on high-demand sectors such as copper, iron ore and crop nutrients, creating what it believes is a "future-enabling portfolio." The move comes after Anglo’s rejection of BHP’s US$38.8 billion bid in late April. If it had gone through, it would have been one of the resource industry's largest mergers and would have produced the world’s leading copper producer.“We expect that a radically simpler business will deliver sustainable incremental value creation through a step change in operational performance and cost reduction,” said Anglo CEO Duncan Wanblad.Anglo hopes that by streamlining its portfolio it will be able to position itself favorably in the rapidly evolving mining sector, particularly as demand for materials critical to renewable energy and electric vehicles continues to rise.The restructuring would also involve the demerger of Anglo American Platinum (OTC Pink:AGPPF,JSE:AMS), and the divestment of the company's steelmaking coal business. Anglo will explore options for its nickel operations. Anglo plans to reduce its investment in its Woodsmith potash mine in North Yorkshire, England, as well.A hurdle for the offloading of De Beers is the Botswana government's 15 percent stake in the business. In a media call, Wanblad expressed support for the growth strategy Anglo has developed for De Beers, but said the company thinks it is "better executed by different owners and in a different structure."Anglo American acquired De Beers in 2011, buying the Oppenheimer family's 40 percent stake for US$5.1 billion. Like other luxury goods, diamonds have experienced a decline in global demand. De Beers, which both mines diamonds and produces synthetic gems through its Lightbox Jewellery unit, has responded by limiting supply and offering flexibility to contracted customers. In February, Anglo announced a US$1.6 billion impairment charge on the division.Reuters notes that a London listing for De Beers could be advantageous for the sluggish UK stock market, which has attracted only 2 percent of European initial public offering volumes this year.Don't forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
FXEmpire.com - Natural Gas
Natural Gas 150524 Daily Chart
Natural gas is moving higher as traders stay bullish ahead of the EIA report, which will be released tomorrow.
FXEmpire.com - Gold
Gold 150524 Daily Chart
Gold rallied as traders reacted to U.S. inflation report, which indicated that Inflation Rate declined from 3.5% in March to 3.4% in April. Traders were worried that Inflation Rate may increase. U.S. dollar and Treasury yields moved low
FXEmpire.com - Natural Gas Technical Analysis
You can see that the natural gas market initially tried to rally early in the day but has given back a little bit of its gains. That being said, I think this is a market that if it pulls back, you probably find buyers underneath. In g
With powerful magnetic and conductive properties, nickel has rapidly graduated from an industrial metal in stainless steel to a critical mineral essential to electric vehicle (EV) batteries.
FXEmpire.com - Grinding Higher
U.S. natural gas futures rose on Wednesday, rebounding from a pullback in the previous session, where it reached a multi-month high before slipping due to light profit-taking. The market retains a robust performance this week, buoyed by an upward re
FXEmpire.com -
Market Overview
Oil prices increased in Asian trade on Wednesday due to a larger-than-expected drop in U.S. inventories and growing expectations of tighter sup
Silver is a notoriously volatile metal capable of wide price swings in either direction. However, the metal is also seen by many as a safe-haven investment and a hedge against inflation. While investing in silver bullion is one popular method for gaining exposure, silver-mining companies offer another route.Silver-mining companies with strong balance sheets and experienced management teams are able to capitalize on high silver prices and weather the storm of low silver prices. Some of the most profitable silver-mining companies are even able to offer investors dividends, which may be appealing for those who are in it for the long haul. Dividends are especially attractive in the often-unstable mining sector because they give investors a degree of security — if a company pays a dividend, it generally feels that it has the cash to do so, and believes it will have the ongoing profits it needs to keep those payments coming.Here’s a brief overview of five silver stocks that pay a dividend. Companies are listed in alphabetical order, and all data included was current as of April 26, 2024.
1. Pan American Silver (TSX:PAAS,NASDAQ:PAAS)
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Company Profile
Market cap: C$9.4 4billion, US$6.91 billion; dividend yield: 2.09 percentFounded by Ross Beaty in 1994, Pan American Silver currently operates several mines located in Mexico, Peru, Canada, Bolivia and Argentina. Last year, Pan American Silver completed the successful acquisition of Yamana Gold bringing the latter's four producing Latin American assets into Pan American's portfolio. The company’s 2023 silver production came in at 20.4 million ounces. The highest dividend Pan American has ever paid is US$0.125 per share, and it was able to pay a dividend of that amount a noteworthy nine times in a row between March 18, 2013, and March 13, 2015. The silver stock paid its most recent quarterly dividend on March 15, 2024, at US$0.10 per share.
Buy now ,
2. Fresnillo (LSE:FRES)
{"@context":"https://schema.org","@type":"Corporation","name":"Fresnillo Plc - Ordinary Shares","url":"https://www.fresnilloplc.com","description":"Fresnillo PLC is a silver mining company and the largest gold producer. The group has seven reportable operating segments, which are represented by six producing mines. The Fresnillo and Saucito mines are located in the state of Zacatecas and are some of the world's largest underground silver mines. The Cirnega mine, located in the state of Durango, an underground gold mine. The San Julian mine, located on the border of Durango states, which is an underground silver-gold mine. The Herradura, Soledad-Dipolos, and Noche Buena are all open pit gold mines, located in the state of Sonora. Herradura and Saucito combined account for more than half of group revenue.","tickerSymbol":null,"sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=30149310&width=980","logo":"https://investingnews.com/media-library/image.gif?id=30149310&width=210"}
Company Profile
Market cap: GBP 4.92 billion; dividend yield: 2.03 percentMajor miner Fresnillo bills itself as the world’s leading primary silver producer. Its precious metals assets include the Fresnillo mine, which is the largest primary silver mine in the world, as well as a portfolio of development and exploration prospects. Fresnillo's silver output for the full-year 2023 came to 56.3 million ounces.This silver stock pays two dividends per year, and its dividend policy takes business profitability and underlying earnings growth into account, as well as capital requirements and cash flow. Dividends from the company are paid in pounds sterling unless shareholders elect to be paid in US dollars. Fresnillo paid its 2023 interim dividend of 1.1058 pence, or US$0.014, on September 14, 2023, and it will pay its 2023 final dividend of 3.4059 pence, or US$0.042, on May 29, 2024.
Buy now ,
3. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)
{"@context":"https://schema.org","@type":"Corporation","name":"Wheaton Precious Metals Corp.","url":"https://www.wheatonpm.com","description":"Wheaton Precious Metals Corp is a precious metal streaming company. The company has entered into over 20 long-term purchase agreements with 17 different mining companies, for the purchase of precious metals and cobalt. It has streaming agreements covering approximately 19 operating mines and 9 development stage projects. The company's projects include Vale's Salobo mine and silver streams on Glencore's Antamina mine and Goldcorp's Penasquito mine.","tickerSymbol":"TSX:WPM","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=29647911&width=980","logo":"https://investingnews.com/media-library/image.gif?id=29647911&width=210"}
Company Profile
Market cap: C$33.44 billion, US$24.40 billion; dividend yield: 1.11 percentWheaton Precious Metals, a well-known name in the silver space largely because of its business model — it is the world’s biggest precious metals streaming company. Streaming companies operate differently from miners, making upfront payments to a variety of metals companies in order to gain the right to purchase all or a portion of their metal production at a low, fixed cost.The company currently has streaming agreements in place for 18 operating mines and 2 development-stage projects. It is interested in companies operating in politically stable jurisdictions, and states that its value should rise with the price of silver and gold. As a result, Wheaton sees itself offering investors multiple benefits while reducing many of the downside risks that traditional miners face.Wheaton pays a quarterly dividend, and it reached US$0.15 per share on September 9, 2021, a level that it has maintained since, and surpassed with its latest dividend paid on April 15, 2024.
Buy now ,
4. Silvercorp Metals (TSX:SVM,NYSE:SVM)
{"@context":"https://schema.org","@type":"Corporation","name":"Silvercorp Metals Inc.","url":"https://www.silvercorp.ca","description":"Silvercorp Metals Inc is a mineral mining company. It acquires, explores, develops, and mines precious and base metal mineral properties at its producing mines and exploration and development projects in China. The group produces silver, gold, lead, and zinc.","tickerSymbol":"TSX:SVM","sameAs":[]}
Press Releases
Company Profile
Market cap: C$798.82 million, US$626.35 million; dividend yield: 0.70 percentSilvercorp Metals has multiple silver-mining operations in China, and is focused on acquiring and growing underdeveloped projects with high upside. It's fiscal year 2024 silver equivalent production came in at approximately 6.8 million ounces, down 2 percent from the previous year.Silvercorp offers shareholders a semiannual dividend, which it states is “based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.” Its most recent dividend was paid on December 15, 2023, at a rate of US$0.0125 per share.
Buy now ,
5. Hecla Mining (NYSE:HL)
{"@context":"https://schema.org","@type":"Corporation","name":"Hecla Mining Company","url":"https://www.hecla-mining.com","description":"Hecla Mining Co produces and explores silver, gold, lead, and zinc. Its main silver mines include Idaho-based Lucky Friday and Greens Creek in Alaska. Hecla acquired 100% of the Greens Creek from Rio Tinto in April 2008, after holding a 29% interest for 20 years. The acquisition doubled the company's silver production. The operating business segments are the Greens Creek unit, the Lucky Friday unit, the Casa Berardi unit, the San Sebastian unit, and the Nevada Operations unit.","tickerSymbol":"NYSE:HL:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=29647916&width=980","logo":"https://investingnews.com/media-library/image.gif?id=29647916&width=210"}
Company Profile
Market cap: US$3.15 billion; dividend yield: 0.50 percentLast on this list of silver stocks that pay dividends is Hecla Mining, the largest primary silver producer in the US, as well as an emerging gold producer. It is the oldest precious metals miner in North America and owns operating silver mines in the US and Mexico, as well as a Quebec-based gold mine. The company acquired Klondex Mines in mid-2018, expanding its portfolio with three high-grade gold mines in Nevada. Hecla gained a position in the Keno Hill silver district, which has Canada's highest-grade silver reserves, with the acquisition of Alexco Resource in 2022. The company reported silver production of 14.3 million ounces for 2023.The silver stock pays an annual minimum common stock dividend, distributing it on a quarterly basis. Hecla also pays a silver-price-linked common stock dividend based on the company’s average realized silver price for the preceding quarter. On March 25, 2024, Hecla paid out a quarterly cash dividend of $0.00625 per share of common stock ( $0.00375 per share for the minimum dividend component plus $0.0025 per share for the silver-linked component. A quarterly cash dividend of $0.875 per share of preferred stock, was paid on April 1, 2024.
Buy now ,
FAQs for silver dividend stocks
What are dividend stocks?
Dividend stocks regularly pay a sum of money to a class of shareholders out of the company's earnings. To qualify for a dividend payout, an investor must have owned the stock on the ex-dividend date. Dividends are often issued as cash payments sent to a shareholder’s brokerage account, but can also be issued as stock or discounts on share purchases.
How to invest in dividend stocks?
Contact your broker to learn more about how to take advantage of companies offering dividend programs. Some dividend stocks may also offer a dividend reinvestment program, allowing shareholders to automatically buy new shares with their dividends, either commission-free or at a reduced cost.
How much do dividend stocks pay?
A company's board of directors is responsible for setting a dividend policy and will determine the size of the dividend payout based on the firm's long-term revenue outlook. The size of an individual shareholder's dividend payout depends on the number of shares owned in that company. For example, if an investor owned 1,000 shares of Wheaton Precious Metals, which is currently paying a dividend of US$0.15 per share, they would get US$150 every quarter — or US$600 annually.
This is an updated version of an article originally published by the Investing News Network in 2015.Don’t forget to follow us @INN_Resource for real-time news updates!Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Tungsten has many applications. It's used in electrical wires, as well as in welding, heavy metal alloys, turbine blades and as a lead substitute in bullets.The metal can also be found in heating and electrical contacts.According to the US Geological Survey, global tungsten production came in at 78,000 metric tons (MT) in 2023, down slightly from 2022's 79,800 MT. The vast majority of tungsten mining and processing occurs in China. Looking forward to 2024 and 2025, increased production of the critical metal is seen coming from mines in South Korea, Russia, Spain and the UK.Tungsten’s importance in a wide range of industrial categories, from smartphones to car batteries, means demand is likely to rise. At the same time, supply chain disruptions and increased production costs are weighing on global supply. Tungsten prices have traded upward in recent years, and market dynamics are expected to push the metal higher in 2024 and beyond. The market for tungsten is expected to see total revenue is expected to grow at a CAGR of 8 percent through 2024 to 2030 to reach nearly US$9.51 billion in value.With that in mind, it’s worth being aware of which countries produce the most tungsten. Here’s an overview of the top tungsten-producing countries last year; data is from the US Geological Survey.
1. China
Mine production: 63,000 MTChina produced 3,000 MT less tungsten in 2023 as it did in 2022, but remained the world’s largest producer by a wide margin. That said, China’s tungsten production has been falling in recent years — the Asian nation has limited the quantity of tungsten-mining and export licenses it awards, and has imposed quotas on tungsten concentrate production. The country has also recently increased environmental inspections.In addition to being the world’s largest tungsten producer, China is the world’s top consumer of the metal. Aside from that, China has been the main source of tungsten imported into the US since 2017, reportedly representing 27 percent of total American tungsten imports between 2019 and 2022. Tighter tungsten supplies out of China in 2024 may lead to higher prices for the metal despite growing production from ex-China sources.
2. Vietnam
Mine production: 3,500 MTVietnam’s tungsten production in 2023 came to 3,500 MT, down by 500 MT from the previous year. Privately owned Masan Resources runs the Vietnam-based Nui Phao mine, which it says is the largest tungsten-producing mine outside China. It is also one of the lowest-cost producers of tungsten in the world.
3. Russia
Mine production: 2,000 MTRussia’s tungsten production remained flat in 2023. The war between Russia and Ukraine has hampered Russia's ability to trade and make deliveries of tungsten to the world market as it continues to face sanctions.Russia is a significant supplier of the metal to Europe, and restrictions on the country’s metal imports have increased the continent’s dependency on Chinese imports. At the same time, the war is fuelling tungsten demand given the metal's use in ammunitions.
4. North Korea
Mine production: 1,700 MTNorth Korea's annual tungsten production rose by 180 MT over the previous year to reach 1,700 MT in 2023. The Mannyŏn mine in South Hamgyong province is the country's largest tungsten mine. In fact, tungsten ore is North Korea's top export, worth nearly US$31 million in 2022, with the majority being consumed by China. Tungsten's top spot in North Korea's export market may be due to the fact that it's one of the few metals not listed under UN sanctions on the country's trade.
5. Bolivia
Mine production: 1,500 MTBolivia has managed to increase its tungsten production since 2014 as a result of moves to promote the tungsten industry in the country. The South American nation's output increased to 1,500 MT in 2022 from 1,360 MT the previous year.The Bolivian mining industry is heavily influenced by Comibol, a state-owned mining umbrella company.
6. Spain
Mine production: 1,500 MTSpain’s tungsten production tied with Bolivia this year, after rising by 87.5 percent over the previous year to1,500 MT in 2023.There are a number of companies engaged in the exploration, development and mining of tungsten assets in Spain. Examples include Almonty Industries (TSX:AII,OTCQX:ALMTF) and EQR Resources (ASX:EQR), which acquired tungsten producer Saloro last year.
7. Rwanda
Mine production: 1,400 MTRwanda produced 1,400 MT of tungsten in 2023, on par with 2022's output. Tungsten is one of the most common conflict minerals in the world, meaning that at least some of it is produced in war zones and is sold to perpetuate fighting. While Rwanda has promoted itself as a source of conflict-free minerals, concerns remain about tungsten output from the country. Nevertheless, the country is an important exporter of tungsten, accounting for 31 percent of global tungsten trade in 2022.
8. Austria
Mine production: 910 MT Austria was the eight largest producer of tungsten in 2023, putting out 910 MT, on par with the previous year. Much of that production can be attributed to Wolfram’s Mittersill mine, which is located in Salzburg and hosts Europe's largest tungsten deposit.
9. Australia
Mine production: 800 MTAustralia's tungsten production increased by 300 percent to overtake Portugal for the ninth spot on this list. The country's 2022 output of the metal came to 200 MT, compared to 800 MT in 2023.Resource companies with Australian-based tungsten projects include Tungsten Mining (ASX:TGN), with key tungsten. rojects such Mt Mulgine, Big Hill and Kilba in Western Australia, Watershed in north east Queensland and Hatches Creek in the Northern Territory; the aforementioned EQR Resources , with its flagship tungsten assets at Mt Carbine in North Queensland; and Group 6 Metals (ASX:G6M), which recently brought the historic Dolphin tungsten mine back into production.
10. Portugal
Mine production: 500 MTPortugal is another country on this list that saw its tungsten production remain flat in 2023. It put out 500 MT of the metal, on par with the 500 MT produced in the previous year.The European country has the lowest known tungsten reserves figure out of all the nations on this list, totaling just 4,000 MT. The Panasqueira mine is Portugal’s largest tungsten-producing operation.
Don’t forget to follow us @INN_Resource for real-time news updates!Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
FXEmpire.com - Natural gas advances to a new trend high of 2.40 on Tuesday and hits the initial target from a measured move. Upward momentum still looks constructive as the day’s trading range is relatively narrow and positioned in the upper zone of Monday’s range. If natural gas
FXEmpire.com - Gold
Gold 140524 Daily Chart
Gold moved above the $2350 level as traders focused on Powell’s dovish comments and falling Treasury yields. Powell signaled that rates would likely stay at current levels for some time.
US President Joe Biden signed the Prohibiting Russian Uranium Imports Act into law on Monday (May 13), effectively starting the process of ending US dependence on imported uranium supply.“This new law reestablishes America’s leadership in the nuclear sector. It will help secure our energy sector for generations to come,” said National Security Advisor Jake Sullivan in a White House statement. “And — building off the unprecedented US$2.72 billion in federal funding that Congress recently appropriated at the President’s request — it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector,” he continued.The act aligns with multilateral goals established last December with US production allies, including Canada, France, Japan and the UK. They pledged to invest US$4.2 billion to expand uranium enrichment and conversion capacities. The US' reliance on Russian uranium dates back in 1993 under the Megatons to Megawatts program, which was established shortly after the Cold War. The initiative involved the purchase of 500 metric tons of uranium from dismantled Russian nuclear warheads, which was then converted into fuel for nuclear reactors.The new legislation is set to change the status quo. With the backing of the federal government, the US has set its sights on sourcing its uranium needs locally, starting with the production of high-assay low-enriched uranium (HALEU) in Ohio.
Senate paves way for Russian ban
The Prohibiting Russian Uranium Imports Act garnered unanimous consent in the Senate on April 30. The bipartisan bill, which received approval from the House of Representatives in December, includes provisions for waivers in the event that US nuclear reactors have trouble securing non-Russian supply. Moreover, it earmarks US$2.7 billion to bolster the development of the domestic uranium-processing industry.According to 2023 data from the US Energy Information Administration, 12 percent of the country's yearly uranium imports originated in Russia, while 25 percent of material was mined in Kazakhstan and 11 percent in Uzbekistan.Uranium fuels nuclear reactors, playing a vital role in electricity generation. The US ban on Russian imports mirrors previous actions taken against the nation, such as the prohibition of Russian oil imports following the country's invasion of Ukraine in 2022, alongside the implementation of price controls on select crude product exports.The ban on Russian imports is expected to disrupt an estimated US$1 billion in annual trade flow to Russia. Replacing this supply is likely to be challenging, and could raise enriched uranium costs by up to 20 percent.The statute, which will expire at the end of 2040, includes provisions allowing the Department of Energy (DOE) to issue waivers authorizing Russian uranium imports according to limits established in an anti-dumping agreement.Senator John Barrasso, a Republican senator from Wyoming and a top figure on the Senate Energy Committee, emphasized the readiness of states like Wyoming to step in and fill the void left by Russian imports."Our bipartisan legislation will help defund Russia's war machine, revive American uranium production, and jumpstart investments in America's nuclear fuel supply chain," noted the lawmaker in a press release.
Other efforts to ramp up US uranium supply
Work to produce HALEU in the US is reportedly already underway.Last autumn, a facility in Ohio initiated the nation's first domestic production of HALEU, albeit at a small scale. Now, with the support of the federal government, efforts are underway to expand domestic production capacity. The DOE has offered private companies a minimum of US$2 million each to kickstart HALEU production, marking the second phase of a US$500 million allocation from Biden's climate-spending law, the Inflation Reduction Act.“Boosting our domestic uranium supply won’t just advance President Biden’s historic climate agenda, but also increase America’s energy security, create good-paying union jobs, and strengthen our economic competitiveness,” said Ali Zaidi, Biden’s national climate adviser, in a statement released earlier this year.Speaking to CNBC in August 2022, Edward McGinnis, former chief executive of fuel-recycling Startup Curio, raised the potential of recycling nuclear waste to complement traditional uranium mining. He called on the Senate and White House to champion measures to deploy nuclear waste recycling, describing it as a win-win solution that addresses both the nuclear waste problem and the need for domestic fuel production.
This is an updated version of an article first published by the Investing News Network on May 1, 2024. Don't forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
The World Platinum Investment Council (WPIC) has released its latest platinum market report, adjusting its 2024 deficit projection up to 476,000 ounces as weaker supply is outpaced by sustained auto and industrial demand.“For the second consecutive year, the platinum market will post a meaningful deficit underscored by platinum's sustained demand and supply vulnerability amidst global economic challenges,” said WPIC CEO Trevor Raymond.“While we currently forecast a deficit of 476 koz, it is worth mentioning that a revision to the bar and coin investment series, based on new field research and information, could mean this deficit is potentially deeper,” he added.Total platinum supply in the first quarter was the second lowest in the WPIC's time series at at 1,625,000 ounces, with the full-year number also expected to be near a record low. The market deficit for the quarter came in at 369,000 ounces.Despite efforts to bolster supply, risks remain a prominent theme in 2024. Total mine supply is forecast to decrease by 3 percent year-on-year, driven by lower output from key producing regions such as South Africa and Russia.More specifically, restructuring and impending closure announcements in the South African region have had a major impact in maintaining operational flexibility, according to Edward Sterck, the WPIC's director of research.“In the past, if a mining company happened to hit a geological interruption, they might have been able to move the work elsewhere. Going forward, the flexibility to be able to do that is probably reduced,” he told the Investing News Network.Refined production in South Africa is expected to decline by 2 percent year-on-year due to announced restructuring plans, closures of shafts/sections and slower production ramp ups than previously anticipated.Similarly, Russian supply is projected to be affected by planned smelter maintenance throughout 2024. In North America, headcount reductions are anticipated to impede the return of production to pre-2020 levels.Recycling also contributes to platinum supply, and while it showed some improvement in Q1 compared to the fourth quarter of 2023, it remains historically weak. The WPIC reported better jewelry recycling, primarily driven by the liquidation of platinum jewelry stocks, but said weakness persists in automotive recycling and the electronics sector.
Automotive sector leads platinum demand higher
On the demand side, automotive platinum demand is benefiting from ongoing substitution of platinum for palladium, increased production of light- and heavy-duty vehicles and hybridization trends.Coming in at a seven year high in Q1, automotive demand was 832,000 ounces, which Sterck said was partially the result of consumers' reluctance to switch from internal combustion engine vehicles to electric vehicles (EVs). He noted that EV market share has stalled out at about 20 to 25 percent in China, while Europe is at about 20 percent. North America is quite a bit lower, at only single digits for EV market share. "That said, they are prepared to make the switch to partial electrification. So we're seeing the fastest-growing segments now are hybrid vehicles," he said, adding that these vehicles require platinum. "I think the kind of impact here really is that what we're seeing is potentially a higher-for-longer environment for platinum for automotive end uses." Meanwhile, platinum demand from the jewelry sector is expected to rebound from a low base, with an anticipated increase of 109,000 ounces in 2024. The WPIC anticipates that this growth will be broad-based, with India expected to lead the way in terms of growth, while China is poised for a mild recovery.Total industrial demand for platinum is forecast at 2,242,000 ounces in 2024, reflecting a 15 percent decline year-on-year. This decline should be understood in the context of record demand levels in 2023.The industrial demand segment now includes a separate line item for the hydrogen economy, accounting for 75,000 ounces and representing a significant increase of 128 percent year-on-year. This encompasses applications such as electrolysis, stationary power and non-automotive fuel cell mobility.
Don't forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Welcome to our monthly round-up of the LBMA OTC trading volumes in gold, silver, platinum and palladium, as recorded on a daily basis by the Association.
FXEmpire.com - Natural Gas Technical Analysis
Natural gas markets have pulled back slightly during the early hours on Tuesday as we continue to see an overall upward move, but we are getting a little stretched at this point. This does make a certain amount of sense considering th
FXEmpire.com - U.S. Natural Gas Futures Movement
U.S. natural gas futures are lower early Tuesday, contrasting with a 15-week high reached on Monday when prices surged approximately 6% due to increased demand projections for the coming week. This recent fluctuation in prices come
To receive updates on ag commodities in your inbox, subscribe to the free newsletter Agricultural Commodities Focus.Global wheat stocks are projected to decline for the fifth consecutive year, reaching their lowest levels since 2015/16, as major exporting countries grapple with s
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