THARISA: PGM prices remain elevated, Chrome remains strong
Tharisa, the platinum group metals (PGMs) and chrome co-producer announces that chrome prices remain strong, with spot at around US$260/t at the time of writing. Stockpiles in China remain at the lower end of seasonal levels despite lower ferrochrome production in the latter part of the quarter.
Demand for chrome remains resilient and shipments are being executed as rapidly as possible given transport logistics constraints in South Africa. Tharisa has benefited from its ability to access three ports to ensure we deliver our products to our clients.
Chinese New Year will slow demand towards the end of January 2023 but with the economy in China opening post COVID-19 restrictions, Tharisa continues to foresee strong demand for the product heading into the Northern Hemisphere spring.
PGM prices remained elevated over the quarter and are set to continue at these levels on the back of PGM demand from the automotive industry and lower production from the major suppliers.
As forecast, while palladium prices have rerated, ever growing reduction of platinum surplus supplies will lead to a deficit over the next 12 to 18 months, according to consensus industry forecasts.
The growing reduction in platinum surplus supplies has resulted in platinum price increases with rhodium and other minor PGM basket constituents remaining strong.