UNITED STATES January 20 2015 11:30 AMTweet 
NEW YORK (Scrap Register): British bank Barclays expects platinum prices are likely to average $1324 an ounce this year.

Uncertainty persists about the level of above-ground stocks, given platinum's subdued price performance despite the launch of a physically backed ETP that has absorbed over 1Moz and a five-month strike in the largest platinum producing nation, South Africa.

Combined with lower gold prices, this uncertainty is likely to cap platinum's gains, but Barclays believes pressure is likely to remain to the upside.

Barclays expects the platinum market to deliver its fourth consecutive deficit this year as supply recovers and stocks are replenished, set against a backdrop of unplanned maintenance, rising concerns over power supply and operational reviews.

Auto-related demand has shown signs of firming across Europe, amplified by the implementation of Euro 6 and Euro VI legislation, and jewellery demand has been responsive to lower prices.

A stronger dollar, higher by-product prices and weaker oil prices have helped offset rising cost pressures. Underlying costs continue to increase, which could raise the floor for prices, but firming auto and jewellery demand are more likely to provide a cushion.