Anglo American Platinum Ltd., the biggest producer of the metal, sank to the lowest price in two years in Johannesburg trading amid a deepening slump in commodity prices.
Amplats, as the unit of Anglo American Plc is known, fell 1.5 percent to 274.22 rand, the lowest closing price since June 2013. It plunged as much as 4.1 percent during the day.
Prices for platinum, mainly used in pollution-control devices for cars and for jewelry, declined to the lowest since 2009 on June 15 as European auto sales slowed and investors cut holdings in exchange-traded funds. The valuations of the world’s largest producers have also suffered from the fallout of a five-month pay strike last year that crippled operations in South Africa, which has the biggest known reserves of the metal.
“A lot of the industry is under water,” Neill Young, an analyst at Coronation Asset Management (Pty) Ltd. in Cape Town, said Tuesday by phone. “These guys need higher metal prices and that’s going to be the biggest driver” of future share performance, he said.
Platinum for immediate delivery declined 0.3 percent to $1,078.54 an ounce, extending a 39 percent slide since 2011.