Scrap Price Services

North American Scrap Prices

China Scrap Prices

India Scrap Prices

European Scrap Prices

LONDON (Scrap Monster): Platinum prices rose after news of a report commissioned by the African National Congress on the state’s role in the minerals sector, said Jim Steel, analyst at HSBC, citing news in the South African newspaper Business Day.

The report recommends a 50% resource rent tax on "super profits" for natural resource producers, an export tariff for some platinum exports and subjecting PGMs to exchange controls similar to the controls currently on gold.

The report also suggests South Africa use its position as the world’s dominant supplier of PGMs to renegotiate supply contracts and that state-owned mining companies be given preferential rights to future discoveries of PGM deposits.

Steel added that, the report was criticized by producers, saying that these suggestions could drive away international investment and make South Africa appear as an unreliable exporter of PGMs.

“Although this would likely be long-term negative for the industry, the uncertainty created by the report may be near-term price bullish. The near-term impact of the report could be to reduce international investment and lead to constrained output that could support prices. Another criticism is that the report makes no suggestions as to how to stimulate increased international demand for platinum,” Steels concluded.