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Platinum Cash (PLY00)

1,449.00s-8.00 (-0.55%) 8:04P EDT (NYMEX)
Commodity Price Quote as of Saturday, May 25th, 2013 View Help

Contract Specifications

Symbol PL
Name Platinum (PL)
Exchange NYMEX
Trading Months January, April, July, October (F, J, N, V)
Trading Unit 50 troy ounces
Tick Size 0.10 (10 cents) per troy ounce ($5.00 per contract)
Daily Limit $50 per troy ounce ($2,500 per contract)
Trading Hours 5:00p.m. - 4:15p.m. (Sun-Fri) (RTH 7:20a.m. - 12:05p.m.) CST
Last Trading Day Third business day prior to the end of the delivery month
Value of one futures unit $50
Value of one options unit $50

CRB Yearbook Description

Platinum is a relatively rare, chemically inert metallic element that is more valuable than gold. Platinum is a grayish-white metal that has a high fusing point, is malleable and ductile, and has a high electrical resistance. Chemically, platinum is relatively inert and resists attack by air, water, single acids, and ordinary reagents. Platinum is the most important of the six-metal group, which also includes ruthenium, rhodium, palladium, osmium, and iridium. The word "platinum" is derived from the Spanish word platina meaning silver.

Platinum is one of the world's rarest metals with new mine production totaling only about 5 million troy ounces a year. All the platinum mined to date would fit in the average-size living room. Platinum is mined all over the world with supplies concentrated in South Africa. South Africa accounts for nearly 80% of world supply, followed by Russia, and North America.

Because platinum will never tarnish, lose its rich white luster, or even wear down after many years, it is prized by the jewelry industry. The international jewelry industry is the largest consumer sector for platinum, accounting for 51% of total platinum demand. In Europe and the U.S., the normal purity of platinum is 95%. Ten tons of ore must be mined and a five-month process is needed to produce one ounce of pure platinum.

The second major consumer sector for platinum is for auto catalysts, with 21% of total platinum demand. Catalysts in autos are used to convert most of vehicle emissions into less harmful carbon dioxide, nitrogen, and water vapor. Platinum is also used in the production of hard disk drive coatings, fiber optic cables, infra-red detectors, fertilizers, explosives, petrol additives, platinum-tipped spark plugs, glassmaking equipment, biodegradable elements for household detergents, dental restorations, and in anti-cancer drugs.

Palladium is very similar to platinum and is part of the same general metals group. Palladium is mined with platinum, but it is somewhat more common because it is also a by-product of nickel mining. The primary use for palladium is in the use of automotive catalysts, with that sector accounting for about 63% of total palladium demand. Other uses for palladium include electronic equipment (21%), dental alloys (12%), and jewelry (4%).

Rhodium, another member of the platinum group, is also used in the automotive industry in pollution control devices. To some extent palladium has replaced rhodium. Iridium is used to process catalysts and it has also found use in some auto catalysts. Iridium and ruthenium are used in the production of polyvinyl chloride. As the prices of these metals change, there is some substitution. Therefore, strength of platinum prices relative to palladium should lead to the substitution of palladium for platinum in catalytic converters.

Platinum futures and options and palladium futures are traded on the New York Mercantile Exchange (NYMEX). Platinum and palladium futures are traded on the Tokyo Commodity Exchange (TOCOM). The NYMEX platinum futures contract calls for the delivery of 50 troy ounces of platinum (0.9995 fineness) and the contract trades in terms of dollars and cents per troy ounce. The NYMEX palladium futures contract calls for the delivery of 50 troy ounces of palladium (0.9995 fineness) and the contract is priced in terms of dollars and cents per troy ounce.

Prices - NYMEX platinum futures prices started the year 2011 at about $1,735 per troy ounce and, except for dips in March and June, moved higher to reach $1,885 in August. The price then turned lower and except for a brief rally in October ended the year at about $1,400 per troy ounce. The price began to rise again and hit about $1,650 per troy ounce in February 2012.

NYMEX palladium futures prices started the year 2011 at about $756 per troy ounce and moved steadily lower all year to finally end the year at about $614 per troy ounce. The price then began to rise and hit about $703 in February of 2012.

Supply - World mine production of platinum in 2011 was unchanged yr/yr at 192,000 kilograms, and remained below the record high of 217,000 kilograms in 2006. South Africa is the world's largest producer of platinum by far with 72% of world production in 2011, followed by Russia (14%), Canada (5%) and the U.S. (2%). World mine production of palladium in 2011 rose +2.5% to 207,000 kilograms, which was still below the record high production level of 222,000 in 2006. The world's largest palladium producers are Russia with 41% of world production in 2011, South Africa with 38%, Canada with 9%, and the U.S. with 6%. World production of platinum group metals other than platinum and palladium in 2010 (latest data available) rose by +3.4% yr/yr to 73,200 kilograms, but still below the 2007 record high of 79,600 kilograms.

U.S. mine production of platinum in 2011 rose by +7.2% yr/yr to 3,700 kilograms, but still below the record high of 4,390 kilograms posted in 2002. U.S. mine production of palladium in 2011 rose by +7.8% yr/yr to 12,500 kilograms, but still below the record high of 14,800 kilograms posted in 2002. U.S. refinery production of scrap platinum and palladium in 2010, latest data available, fell 4.1% to 14,420 kilograms, but still above the 2005 record low of 11,580 kilograms but still well below the 13-year high of 24,790 kilograms in 2001.

Demand - The total of platinum-group metals sold to consuming industries in the U.S. in 2004 (the latest data available) rose +7.1% to 91,434 kilograms. The two main U.S. industries that use platinum are the auto industry, which accounted for about 74% of U.S. platinum usage in 2004, and the jewelry industry, which accounted for about 26% of U.S. platinum usage.

Trade - U.S. imports of refined platinum and palladium in 2011 for consumption fell -5.3% yr/yr to 239,880 kilograms. U.S. exports of refined platinum and palladium in 2011 fell by -24.8% to 45,900 kilograms, and still well below the record high of 103,590 kilograms in 2006. The U.S. relied on imports for 88% of its platinum and palladium consumption in 2011.

Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources - reports from governments, private industries, and trade and industrial associations - are authoritative, and its historical scope is second to none. Additional information can be found at www.crbyearbook.com.
More commodity data from Commodity Research Bureau.