Platinum prices are holding near decade lows, however, large miners do not cut production, Bloomberg reports.

Even though about half of South African output is unprofitable, only few companies reduce production significantly, while leading producer Anglo American Platinum Ltd. is increasing volumes. This partially happens because weaker rand reduces production costs and increases profitability, while providing hope for struggling sector. Producers also hope for higher prices.

This is however a sign that prices will stay depressed. Any additional volumes from South Africa that mines about 70% of all supply will put pressure on the market, which is already showing surplus of 316000 ounces this year. This is the highest level since 2011.

Platinum, which is used in autocatalists, lost 13% of its value this year due to slower sales of diesel cars, while threats of trade war put doubts on demand outlook and expectations of interest rates hikes in the US reduced appeal of precious metals.

Analytics agree that weak prices will be observed at least next three years until more tight laws on auto emissions will be introduced and economic growth supports platinum in long-term.

To sustain prices, sector has to cut production by 600000 ounces in next 18 months, experts think.