Independent research house Capital Economics says what will keep prices robust is strong demand from the auto sector (see chart) and the substantial risks to supply that still exist.

South Africa’s mines have been struggling with profitability and productivity for a while. Indeed, Anglo American had signalled its intention to sell its South African platinum mines even before the latest strike. Companies will be forced to restructure and mechanise in order to enhance competitiveness. Redundancies – and further union protests – appear inevitable.

South Africa and Russia combined account for close to 80% of global supply of palladium and 70% of platinum output which are mainly used to clean emissions in automobiles.