07/10 1:07P Commodities Review: Platinum Up On Amplats Strike Fear
By Steve McGrath and Hugh Taggart
LONDON (Dow Jones)--Spot platinum prices rose in Europe Monday on news of a
potential strike by members of South Africa's National Union of Mineworkers at
the Anglo American Platinum Corp. (O.AAP), or Amplats, brokers said.
Amplats - the world's biggest platinum group metals producer, with planned
output of 2 million troy ounces of platinum a year - has proposed a meeting to
try and head off industrial action.
Amplats is "90% likely" to face strike action later this week, the union
said Monday.
In an interview with Dow Jones Newswires, the union's chief negotiator,
Archie Palane, said up to 25,000 workers at the company - about 52% of its
workforce - are preparing for a protracted strike.
However, Amplats spokesman Mike Mtakati says while a strike would be
disruptive, it would have a limited effect on production.
The talks are seen having a limited positive effect on the market short
term, but combined with further delays to Russian shipments, they may pressure
supplies and lead to higher prices if a protracted strike goes ahead, said
Frederic Penizzutti, head of strategy and research at MKS Finance S.A.
"It's a factor in the market, but it won't have a very large effect unless
Frederic Penizzutti, head of strategy and research at MKS Finance S.A.
"It's a factor in the market, but it won't have a very large effect unless
it's prolonged," he said.
Further delays to Russian exports were cited as the main reason platinum
prices are again rising, with further Japanese buying seen overnight in Asia
despite news that the Russian export agency Almazjuvelirexport had been asked
to negotiate long-term supply deals to Japan, dealers said.
At 1705 GMT, spot platinum traded at $549/oz, up $7 from late in Asia
Monday.
PHIL |
