South African Supply Worry Pushes Platinum Near Three-Week High

A member of South Africa's National Union of Mineworkers was killed and another wounded in a shooting at the union's office at platinum miner Lonmin PLC (LMI.LN) on Monday. Production in South Africa fell 15% last year as strikes rippled through the industry following clashes at Lonmin's Marikana mine beginning in August.

"South Africa can change the supply-and-demand balance very quickly," said Adam Klopfenstein, a senior market strategist with Archer Financial Services. "Mining disruptions would support platinum" prices.

South Africa accounted for 73% of platinum mine output last year, according to Johnson Matthey, a specialty chemicals company and major platinum user.

The NUM said it doesn't know who carried out Monday's shooting. Lonmin said that police are investigating the incident and that the company is "appalled and horrified at this senseless violence."

Read More: online.wsj.com/article/BT-CO-20130603-709298.html