Platinum Demand May Drop This Year, Leading to Supply Surplus

By Claudia Carpenter

Sept. 17 (Bloomberg) -- Platinum demand may decline more than 5 percent this year, falling short of production, according to London-based research company GFMS Ltd.

Usage will drop to 7.3 million ounces from 7.7 million in 2007, GFMS Chief Executive Officer Paul Walker said at a conference in London today. Supply will exceed demand by 120,000 ounces, he said.

Platinum and palladium, sometimes extracted from the same ore, are both used in jewelry and catalytic converters to reduce noxious gases from car and truck exhausts. Palladium will have a supply deficit, Walker said.

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net