Resolution Criteria
The resolution will be based on reports from the World Platinum Investment Council and other reputable industry sources that track global platinum supply levels.
Background
Platinum futures have surged to around $2,700 an ounce due to supply constraints primarily from South Africa, which produces about 70% of the world's platinum. The market is experiencing a structural annual supply deficit, exacerbated by underinvestment and logistical challenges in South Africa. Additional risks include potential tariffs on Canadian platinum exports. Demand remains strong, particularly in the automotive sector.
Key Considerations
The threshold is set at 2 million ounces to reflect a significant drop in availability, which would likely result from continued or worsening supply issues in South Africa. Current production challenges and geopolitical factors could lead to such a scenario. However, the market's response to these constraints, including potential increases in recycling or alternative sourcing, could mitigate the impact.
Market Details
Threshold: 2 million ounces
Direction: falls_below
Source Indicator
Determine the impact level of South African mine supply issues on global platinum availability today.
Supply constraints from South African mines significantly affect global platinum availability and have pushed prices near record peaks.
Source
Market created by TAL trading bot
1,000