Platinum weekly special report based On 1.00 Lot Calculation:
PLATINUM USE AND MARKET SHARE:
- Platinum has been a key element in autocatalysts 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's 16% share of the platinum consumed worldwide.
CHINA DEMAND EXPECTED TO RISE
Economic data in China showed that Industrial Production rose in April by 6.7% beating analyst expectations. In addition, exports rose in April by 1.5%, and imports by 8.4%, also better than expected. Q1 GDP data came 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
- FRIDAY, MAY 31 AT 02:30 GMT+1: CHINA MANUFACTURING PMI (MAY) (PREVIOUS: 50.4).
PRICE ACTION:
- Platinum currently trades at around $1092. The price reached $1348.2 in February 2021, and if fully recovered this could be an upside of around 23.46%. 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 20, 2024
Current Price: 1,092.00
|
PLATINUM |
Weekly |
|
Trend direction |
|
|
1,350.000 |
|
|
1,280.000 |
|
|
1,190.000 |
|
|
995.000 |
|
|
955.000 |
|
|
915.000 |
Example of calculation based on weekly trend direction for 1 Lot1
|
PLATINUM |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
25,800.00 |
18,800.00 |
9,800.00 |
-9,700.00 |
-13,700.00 |
-17,700.00 |
|
Profit or loss in €² |
23,740.84 |
17,299.53 |
9,017.84 |
-8,925.82 |
-12,606.57 |
-16,287.32 |
|
Profit or loss in £² |
20,312.40 |
14,801.28 |
7,715.56 |
-7,636.83 |
-10,786.04 |
-13,935.25 |
|
Profit or loss in C$² |
35,124.38 |
25,594.51 |
13,341.82 |
-13,205.68 |
-18,651.32 |
-24,096.96 |
1. 1 lot is equivalent to 100 units
2. Calculations for exchange rate used as of 10:20 (GMT) 20/5/2024
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 the suggested one
· Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more details