Platinum prices higher on strike worries

Platinum prices were higher Tuesday on the possibility that a strike at a South African miner’s facilities could disrupt supplies of the metal used in jewelry making and by manufacturers of pollution control devices for motor vehicles.

Combined with data showing that car sales in China was up 47 percent in May from the same month last year, a supply-disrupting strike could put platinum supplies in a serious deficit compared to demand.

July platinum added $13.90 to $1,257.90 per troy ounce in afternoon trade in New York while September palladium, which is also used in pollution control devices and in jewelry, was up $4.20 to $256.20 per troy ounce.

Other precious metals prices were also higher as August gold added $2.20 to $954.70 per troy ounce in New York, while July silver gained 19 cents to $15.14 per troy ounce.

Meanwhile, among base metals prices for copper, aluminium and lead were also significantly higher on the prospect of higher demand as China car sales soar.

July copper added 11 cents to $2.37 per pound in New York while three-month copper gained $200 to $5,180 per tonne in late afternoon trade on the London Metal Exchange, a gain of 4.7 percent in New York and 4 percent in London.

Aluminium prices added 2.5 percent to $1,660 per tonne while lead prices gained 3.7 percent to $1,730 per tonne.

Zinc, nickel and tin prices were also higher in London, gaining 4.7 percent, 4.9 percent and 6 percent respectively.