Platinum to surge 25% on 2009 forecast

Prices have risen 34 per cent this year and averaged $1,936. Merrill also raised its 2008 copper forecast.  Eskom Holdings, which generates 95 per cent of South Africa's electricity, has curbed supply to mines and smelters in the country since January. The shortage will continue until 2012, the company has said.  "After a period of zero production because of power outages, mines are now producing again but have to contend with reduced power availability,'' the analysts said in the report. "Expect more shocks.''  Copper will average $3.60 a pound ($7,937 a metric tonne) this year, 5 per cent higher than earlier forecast, Merrill said. The metal will average $3.79 a pound next year, 9.8 per cent more than the previous estimate.  "Looking past current softness due to weak Chinese demand, copper continues to look tight through 2009,'' the analysts said.  Nickel will average $11.65 a pound this year, a 20 per cent drop from the previous forecast. Zinc will average $1.04 a pound this year, 3 per cent lower than previously forecast.  The bank also raised its forecasts for coking coal, used in steelmaking, and thermal coal, used in power plants. Coking coal will trade at $320 a tonne next year, 78 per cent more than the previous estimate.  Thermal coal will trade at $135 a tonne, 23 per cent more than previously forecast, Merrill said.  "As long as high oil prices persist, we believe more people will begin to contemplate coal's value on a contained energy basis versus other fossil fuel alternatives,'' the analysts wrote in the report.  "On this basis, it is not difficult to get to $200 a tonne thermal coal prices.''