June 30th, 2008 | by admin |
LONDON, June 30 (Reuters) - Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) hasraised its full-year 2008 rhodium price forecast by 5.5 percent,citing continued high demand from carmakers and tight supply,the bank said in a note.
The price of the precious metal, the world's most expensive,is likely to average $9,293 an ounce this year, the bank said.
Demand is likely to remain firm from autocatalystmanufacturers, whose consumption accounts for 85 percent of themarket, and from glass manufacturers.
A supply shortfall from major producer South Africa, whichhas been suffering the effect of a power shortage since thebeginning of the year, is also likely to support the market.
"In the short to medium-term, we have recognised that theimpact of continued supply shocks... in a tight, illiquidmarket will likely result in high prices being sustained for atleast the next few years," Deutsche Bank said in a note.
It noted output disruptions at major precious metalsproducers AngloPlatinum (AMSJ.J: Quote, Profile, Research, Stock Buzz) and Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz) as being ofparticular concern.
However, if production problems were resolved, we could seea sharp price decline over a short period, it added.
In the longer term, prices are likely to fall as minersbegin to exploit more rhodium-rich areas, it said.
Deutsche Bank also lifted its outlook for platinum prices to$1,999 an ounce from $1,942 previously, but left its 2009 and2010 forecasts at $2,150 an ounce and $1,925 respectively.
(Reporting by Jan Harvey: Editing by Peter Blackburn)
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