Platinum weekly special report based On 1.00 Lot Calculation:
PLATINUM USE AND MARKET SHARE:
- Platinum has been a key element in autocatalysis for over forty years, with the automotive sector being its largest consumer, accounting for about 40% of annual demand.
- MARKET SHARE (PRODUCERS): BIGGEST PLATINUM PRODUCERS IN THE WORLD: South Africa is the largest producer holding 72.8% of the global market share while Russia is the second with 8-10% of the market. Zimbabwe is third with 5%.
- MARKET SHARE (CONSUMERS): China is the world's largest platinum consumer with 34%, while Europe holds 22% and North America 16% share of the platinum consumed worldwide.
CHINA DEMAND EXPECTED TO RISE
Economic data in China showed that exports rose in April by 1.5%, and imports by 8.4%, both beating analysts’ expectations. In addition, Inflation came out at 0.3%, up from the previous 0.1% while Q1 GDP data also beat expectations, coming in at 5.3% vs. 5.2% expected.
RUSSIA AND SOUTH AFRICA TO CUT PRODUCTION
PRODUCTION CUTS: Global platinum production is expected to decline by 1.5% in 2024 following a 1.3% rise in 2023, largely due to substantial difficulties faced by key producers in Russia and South Africa.
- Russia's platinum output is projected to fall by 10.7% in 2024, a significant decline attributed to planned production cuts by Norilsk Nickel, the country's largest producer.
- South Africa's platinum supply to world markets is expected to drop by 2% in 2024 due to shaft closures, less investment, job cuts and strikes.
EVENTS
- WEDNESDAY, MAY 15 AT 13:30 GMT+1: US INFLATION (CPI) (APRIL). The headline inflation currently stands at 3.5%, while core inflation stands at 3.8%.
- FRIDAY, MAY 17 AT 03:00 GMT+1: CHINA INDUSTRIAL PRODUCTION (APRIL) (PREVIOUS: 4.5%);
PRICE ACTION:
- Platinum currently trades around $1059.6. The price reached $1348.2 in February 2021, and if fully recovered this could be an upside of around 27.24%. However, it could also decline further.
ANALYST OPINION (Second half of 2024): Bank of America expects a price of $1100 in 2024. Deutsche Bank estimates $1350, while Morgan Stanley forecasts $1125. Source: Bloomberg
PLATINUM, May 15, 2024
Current Price: 1,059.30
|
PLATINUM |
Weekly |
|
Trend direction |
|
|
1,350.000 |
|
|
1,200.000 |
|
|
1,100.000 |
|
|
1,023.000 |
|
|
980.000 |
|
|
930.000 |
Example of calculation based on weekly trend direction for 1 Lot1
|
PLATINUM |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
29,070.00 |
14,070.00 |
4,070.00 |
-3,630.00 |
-7,930.00 |
-12,930.00 |
|
Profit or loss in €² |
26,839.33 |
12,990.35 |
3,757.69 |
-3,351.45 |
-7,321.50 |
-11,937.82 |
|
Profit or loss in £² |
23,046.46 |
11,154.58 |
3,226.66 |
-2,877.83 |
-6,286.84 |
-10,250.80 |
|
Profit or loss in C$² |
39,611.22 |
19,171.99 |
5,545.84 |
-4,946.29 |
-10,805.54 |
-17,618.61 |
1. 1 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:20 (GMT) 15/5/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more details