Platinum

Platinum weekly uptrend opportunity based On 1.00 Lot Calculation:

PLATINUM USE AND MARKET SHARE:

• Platinum is mostly used in catalytic convertors (circa 40%) by car industry to reduce harmful gas emission, while tightening regulation is forcing auto makers to put more of Platinum into each vehicle, which in turn could keep demand outlook positive. Platinum has also found use in the jewelry sector (circa 32%). Industrial use of Platinum takes up to 21%. Platinum has been also used as an inflation hedge investment (3%) through the years, and as such remains vulnerable to changing global interest rates and global inflation.

• MARKET SHARE (PRODUCERS): South Africa is the largest producer holding 70.0% of the markets, while Russia is the second largest with 12- 13% of the markets. Zimbabwe is third on the list with 8.2% of the global production.

• MARKET SHARE (CONSUMERS): China is the largest Platinum consumer with 28%, while Europe is second in line with 25%. North America (USA) takes up to 20%, while Japan stands at 15%.

• EXPECTATIONS FOR PLATINUM IN 2022 COMPARED TO 2021 (SOURCE: WORLD PLATINUM INVESTMENT COUNCIL): Demand for Platinum in the Auto industry may go up by 11%, while industrial demand may rise by 27%. Demand in the jewelry sector may increase by 5%. Investment demand may go up 29% in 2022 compared to 2021.

RUSSIA- UKRAINE WAR AND RUSSIA AGAINST THE WEST ECONOMIC WAR

• RUSSIA- UKRAINE WAR: President Vladimir Putin announced an attack on Ukraine on February 24, days after he recognized two breakaway regions of Russia’s neighbor as independent. Attacks are occurring in Kyiv, Odessa, Mariupol and other locations in Ukraine. Russia faced tough sanctions by the EU and the US and other allies, which brought the country to the brink of sovereign debt default. Russia is the second largest Platinum producer in the world providing around 12% of global supply, only behind South Africa which provides 70% of the global supply.

• BREAKING (MAY 3): RUSSIA'S PUTIN SIGNS DECREE ON RETALIATORY ECONOMIC MEASURES IN RESPONSE TO UNFRIENDLY ACTIONS OF SOME FOREIGN STATES. Putin signed a broad decree which forbade the export of products and raw materials to people and entities on a sanctions list.

• BREAKING NEWS (APRIL 8): THE LARGEST PALLADIUM AND PLATINUM MARKET IN THE WOLRD SUSPENDS DELIVERY OF RUSSIAN REFINED PALLADIUM AND PLATINUM. This could limit the access to the Palladium and Platinum market, which has been already under pressure due to Russia- Ukraine war and it could result in higher Palladium and Platinum prices. Russia is the second largest Platinum producer in the world providing around 12% of global supply and the largest Palladium producer in the world providing around 45% of global supply.

ANALYSIS AND EVENTS:

• EVENTS (BY JUNE 1, 2022): SHANGHAI REOPENING FROM COVID-19 LOCKDOWNS. Shanghai is a large finance and industrial center in China, which host a lot of auto factories that should reopen for operation by June 1, 2022. Therefore, what was lost in terms of demand over the past six weeks, will be soon recover.

• EXPECTED SWITCH FROM PALLADIUM TO PLATINUM: The markets expect the auto industry, especially in China, to continue to switch from Palladium to Platinum at an accelerated rate in 2022.

• ANALYST OPINION (UBS): UBS sees platinum prices rising to $1,150 per ounce as the global chip shortage leads to a significant restocking of cars. Bank of America forecasts 1338 in 2022.

Platinum, May 24, 2022
Current Price: 943

Example of calculation base on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 24/05/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

• You may wish to consider closing your position in profit, even if it is lower than suggested one

• Trailing stop technique can protect the profit – Ask your Client Manager for more detail