Feb. 14 (Bloomberg) -- Platinum rose to a record in New York as Impala Platinum Holdings Ltd., the second-biggest producer of the metal, forecast a drop in output because of a power shortage in South Africa. Palladium also gained.

The Johannesburg-based company said it may lose 40,000 ounces of production, equal to more than two days of global supply. Platinum rose to a record $2,030.60 an ounce today after breaching $2,000 yesterday. The metal also gained to a record in London, topping $2,000 an ounce for a second day.

``The market remains very strong,'' said James Steel, an analyst with HSBC Securities in New York. ``There is a wide- spread concern about the power shortage in South Africa and what it will mean for platinum production.''

Platinum futures for April delivery rose $22.20, or 1.1 percent, to $2,005.90 an ounce on the New York Mercantile Exchange, closing above $2,000 an ounce for the first time. The metal, used in jewelry and automotive catalysts, has jumped 31 percent this year, outpacing gold's 8.7 percent gain and silver's 16 percent increase.

``We can remain around here for a while,'' Steel said. Without further bad news on the supply outlook, it is unlikely the metal will go much higher, he said.

Some analysts, including Ralph Preston, a senior market analyst at Heritage West Financial Inc. in San Diego, say there's a possibility platinum could reach $3,000 an ounce later this year.

Palladium futures for March delivery rose $2.10, or 0.5 percent, to $441.15 an ounce. The price touched $450.95 on Feb. 12, the highest since September 2001. The metal, also used in jewelry and auto catalysts, is up 17 percent this year and has climbed 28 percent in the past 12 months.

Mine Closings

Most South African mines shut for five days last month after Johannesburg-based Eskom Holdings Ltd. couldn't guarantee power supplies. Eskom later agreed to provide industrial users with 90 percent of their usual requirements, and today the utility said that will continue until 2012. The nation supplies about three-quarters of the world's platinum.

``The platinum-group metals are reaching into areas where the absence of continuing bad news on the Eskom front could eventually bring some profit-taking,'' Jon Nadler, senior analyst at Kitco Bullion Dealers in Montreal, said today in an e-mailed report. ``In any event, their outperformance of gold has been phenomenal.''

Sean Darby, head of regional strategy at Nomura Holdings Inc., said in an interview with Bloomberg television in Hong Kong that he favors investing in precious metals, including platinum, silver and gold, because it provides a hedge against inflation.

``There are two reasons: risk aversion and a higher inflation rate globally at the moment,'' Darny said. ``The more they try to rescue the financial sector, the more inflation is likely to appear on the upside.''

World platinum supplies may fall 400,000 ounces short of demand this year because of South African disruptions, Standard Bank Group Ltd. said. The deficit will widen from 265,000 ounces last year, Standard Bank analysts including Johannesburg-based Walter de Wet wrote in a report earlier this week.

To contact the reporter on the story: Halia Pavliva in New York at hpavliva@bloomberg.net;

Last Updated: February 14, 2008 14:17 EST