Feb. 8 (Bloomberg) -- Platinum rose to a record in New York on mounting concern that shipments will decline from South Africa and Russia, the world's largest producers of the precious metal. Palladium jumped to a six-year high.

Platinum production fell last year for the first time since 1999, metals trader Johnson Matthey Plc said in November. South Africa, which supplies at least three-fourths of the world's platinum, shipped 1.3 percent less in 2007 after fatal accidents led to mine closings at Anglo Platinum Ltd. Supplies from Russia, the world's second-biggest producer, were expected to decline 7.9 percent in 2007, according to Johnson Matthey.

``Platinum fundamentals are very good,'' said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois. ``No one believes there won't be new troubles in South Africa. It's just one tragedy after another. And the only other significant source of platinum supplies is Russia, and those supplies are questionable, too.''

Platinum futures for April delivery climbed $32.60, or 1.8 percent, to $1,884 an ounce on the New York Mercantile Exchange, after earlier reaching $1,886.90, the highest ever for a most-active contract. The metal climbed 6.4 percent this week and has jumped 24 percent this year, outpacing gold and silver.

Palladium futures for March delivery gained $12.40, or 2.9 percent, to $440.85 an ounce. The price reached $441.50, the highest since January 2002. The metal has risen 17 percent this year, gaining 5.7 percent this week.

Platinum and palladium are used in jewelry and auto catalysts. Some investors buy the metals as an alternative investment to currencies, equities or bonds.

Forecasts

Platinum may reach $2,000 an ounce later this year, according to traders and analysts, including Ron Goodis, futures trading director at Equidex Brokerage Group Inc. in Closter, New Jersey.

Anglo Platinum, the world's largest producer of the metal, was among those South African mining companies that had to shut some operations in the country last month.

Power shortages tied to Eskom Holdings Ltd., South Africa's state-owned utility, shut most mines in the country, source of about three-quarters of world platinum supplies, for five days last month. Eskom told major customers last week that it won't have sufficient capacity to guarantee adequate power until 2013.

``Russia has a long history of taking advantage of situations like that,'' Kaplan said.

Projected Supplies

Russia was expected to supply 820,000 ounces of platinum in 2007 and 4.24 million ounces of palladium, Johnson Matthey said in November. Platinum supplies from South Africa were expected to total 5.22 million ounces in 2007 and palladium supplies were expected at about 2.8 million ounces, according to Johnson Matthey.

Citigroup Inc. this week lowered its 2008 forecast for platinum output in South Africa by 5 percent. The country produced almost 5.3 million ounces of the metal in 2006.

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

Last Updated: February 8, 2008 14:26 EST