Tharisa sees stable PGM prices as chrome demand rebounds amidst trade uncertainties

PHOEVOS Pouroulis, the CEO of Tharisa said on Thursday that demand for chrome has been rebounding while platinum group metals (PGM) prices in rand terms have stabilised although global trade wars are ocassioning economic uncertainty that could dent demand for some commodities.

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Tharisa is a PGM and chrome miner and processor in South Africa.

According to Pouroulis, “chrome has rebounded strongly” as “PGM basket price is relatively stable in rand terms” due to the devaluation of the South African currency.

Nonetheless, the impact of the trade wars on the outlook for global economic growth “is creating an uncertain and volatile environment which may impact on demand” for commodities.

The US government has roiled markets after it introduced tariffs on major global source markets although on Wednesday President Donald Trump said he was pausing these tariffs for 90 days except for China. “While both PGM and chrome are not subject to US tariffs, the intermediate and final products containing these commodities will be,’ said Pouroulis.

During the quarter to the end of March, Tharisa raised PGM production to 32 500 ounces compared to 29 900 ounces in the same quarter a year earlier.