Impala Platinum may buy metal on the open market to meet deliveries

[BlackSheep]

http://www.bloomberg.com/news/2014-...-to-supply-customers-as-strike-continues.html

Impala Platinum Holdings Ltd. (IMP) said it may buy metal on the open market to meet deliveries amid a 9 1/2-week strike at the world's largest producers of the metal.

"We definitely can't continue to supply all our clients as we normally would've done," Johan Theron, a spokesman for Johannesburg-based Impala, the second-biggest producer, said today by phone.

At the going rate I imagine this might prove cheaper than actually mining/refining the stuff!

There seems to be conflicting news stories regarding stockpiles. Originally we were told they'd run out around week 10 of the strike (come and gone now), however some recent articles claimed 9 months (iirc stockpiled ore not refined) - difficult to know who to believe :/

Given the lead time to get the mines operational again, plus growing number of steadily deteriorating shafts which reportedly will be closed due to lack of maintenance during the strike making them unsustainable, it seems to me the flow on effect from the strikes could go on for some time even if the miners go back to work tomorrow (seems highly unlikely as amcu didn't even bother to attend the most recent conciliation talks)

 

[Ronnie 666]

Knowing the SA mining scene the few miners that do return tomorrow will be discouraged from returning the following day.
This is the end of the current platinum/palladium supply from South Africa.
The PGM's will lead the next PM rally.

 

[Clawhammer]

Amplats sent force majeure notices to some suppliers of goods and services to the operations affected by the strike

Platinum inventories are "being drained and being absorbed" as the producers' stockpiles are nearing depletion

Neither side has made new concessions during separate talks .... during the past week

yet the spot price has barely moved

I really don't get it

 

[screaming eagle]

The Platinum spot price that most of us refer to is derived from Good Delivery bars if I'm correct? Most industrial users probably use Platinum sponge. When the large customers of Impala (mostly industrial users) start depleting their inventory, the spot price for sponge will increase, bars may take some time to follow as it's not the most efficient way for industrial users to buy the metal.

I hope the price for Pt bars goes sky high and takes other PMs with it.

 

[BlackSheep]

yet the spot price has barely moved

I really don't get it

I think maybe the big money is waiting to see who blinks first?

This is one of my fave charts to keep an eye on lately (along with PSR)

 

[Ronnie 666]

The Platinum spot price that most of us refer to is derived from Good Delivery bars if I'm correct? Most industrial users probably use Platinum sponge. When the large customers of Impala (mostly industrial users) start depleting their inventory, the spot price for sponge will increase, bars may take some time to follow as it's not the most efficient way for industrial users to buy the metal.

I hope the price for Pt bars goes sky high and takes other PMs with it.

I think the Pt pice is determined by the paper market ie. PPLT, PTM, PGM, IPLT, LPLT. It's no different to the Au, Ag market but much smaller. I think there is no price jump as orders can still be filled. Once they can't the price will jump.

 

[Ronnie 666]

Mines offer pay increases of 7.5-10% and platinum prices fall 1% ($26). The boys on Wall Street think it will be over by next week and Pt will be pouring in.

What a joke! Firstly, no one has accepted the offer, secondly inflation in South Africa is running at :

http://www.tradingeconomics.com/south-africa/inflation-cpi

Transport 16%
Food 15%

These are official figures so it's likely you should add another 5%
What is a 10% wage increase going to do ?..

Even if it is accepted how long is this going to last ??

My feeling is that the corrupt ANC Zuma government will force an agreement as their national elections looms in May.
By years end the strike will resume. This is no fix. Just my 2c worth.

 

[Savocado]

I'm sure holding the largest supplies of platinum and palladium in the world surely helps. If the mine shuts there is nowhere else to mine to meet the global requirements.

If the workers will not return unless their pay in increased their pay HAS to be increased.

I fell as if they are in a position to dictate what they want.

 

[Ronnie 666]

I'm sure holding the largest supplies of platinum and palladium in the world surely helps. If the mine shuts there is nowhere else to mine to meet the global requirements.

If the workers will not return unless their pay in increased their pay HAS to be increased.

I fell as if they are in a position to dictate what they want.

I agree but then the price of Pt has to reflect the cost of production not some paper derivative created on Wall Street. That is the problem!