From A1

In 2022, we expect that the wider markets’ volatility that we have seen over the last two years will persist, in part due to the uncertainties of the conflict in Ukraine,” WPIC said.

It said there had been a sharp escalation in supply disruptions, leading to further inflationary pressures and tightening of monetary policy across a number of key economies.

“e International Monetary Fund downgraded its forecast for global economic growth for the year to 3,6%. Even so, we still forecast a modest growth in platinum demand of 2% year-on-year, although this reflects markedly different trends in a number of key segments. Among these, most importantly, we forecast automotive demand to increase by 16%, on expectations of a recovery in production and higher vehicle loadings,” it said.

On the supply side, mine supply is forecast to decline by 5%, mainly due to lower output from South Africa. Secondary supply will be constrained by reduced scrappage rates and lower jewellery sales.

is will result in a market surplus of 627 000oz, down notably on 2021,” it said.

“We have significantly revised our 2022 forecast downwards, primarily due to expectations of much lower output from South Africa. ree major producers, Amplats, Implats and Northam have lowered their guidance. Although subject to individual operational constraints, common headwinds of increased safety incidents and resultant production stoppages, community unrest and supply chain procurement challenges were cited.”

Overall, platinum mine supply is forecast to decline 7% year-on-year to 5 872 000oz due to the depletion of Anglo American Platinum semi-finished inventory that boosted refined volumes in 2021, while planned smelter maintenance in South African and Russia reduces processing availability.

South Africa will account for the bulk of the fall, with a forecast decline of 9% to 4 258 000oz. Output from North America is expected to grow 22% as Vale’s Sudbury production normalises following the strike in 2021.

However, regional labour shortages continue to impact operations and present a downside risk, the council said.

Platinum is one of Zimbabwe’s biggest foreign currency earners.