By Jae Hur Nov. 19 (Bloomberg) -- Platinum advanced for a second day after Lonmin Plc, the world's third-largest producer, said it will cut output and Johnson Matthey Plc forecast a global supply shortfall because of mining disruptions. Lonmin will cut annual output by at least 50,000 ounces, halt expansion and eliminate a third of jobs at its London headquarters, the company said yesterday. World supply in 2008 will fall short of demand by 240,000 ounces, the most in five years, Johnson Matthey, which uses the metal making a third of autocatalysts, said in a report. ``The metal has fallen too much because of a global recession, especially compared with gold,'' said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. ``We may see some selling in gold and buying in platinum.'' Immediate-delivery platinum rose as much as 2.7 percent to $858.50 an ounce and was at $842 at 5:54 p.m. Tokyo time. Palladium for immediate delivery fell 0.5 percent to $216.50 an ounce. Spot prices have slumped 45 percent this year as sales at carmakers, the biggest users of the metal, plummeted amid rising unemployment and tighter consumer lending. Platinum, which reached a record $2,301.50 in March, is used in pollution-control devices and jewelry. Gold for immediate delivery, which touched a record $1,032.70 in March, has dropped 11 percent this year. Supply Deficit The projected platinum supply deficit is double last year's gap of 120,000 ounces as output dropped faster than consumption because of mining disruptions in South Africa, London-based Johnson Matthey said yesterday. Supply will decline 4.2 percent to 6.28 million ounces. In comparison, consumption will fall 2.3 percent to 6.52 million ounces as an economic slowdown is mitigated by increased use of platinum in autocatalysts as Europe tightens rules on vehicle pollution, according to Johnson Matthey. Platinum may drop as low as $700 and rise as high as $1,400 in the next six months, the report said. October-delivery platinum rose as much as 4.2 percent to 2,674 yen a gram ($860 an ounce) on the Tokyo Commodity Exchange and closed at 2,639 yen, gaining for the first time in three days. Toyota Motor Corp. will further trim North American production and Nissan Motor Co. said second-half profit will fall to ``zero'' as a recession causes U.S. vehicle sales to head for their lowest annual tally in 15 years. Toyota, heading for its first drop in U.S. sales in 13 years, will extend the Christmas-New Year closure at its U.S. and Canadian plants by two days and make other cuts, spokesman Mike Goss said in an interview yesterday. Nissan Chief Executive Officer Carlos Ghosn made the profit forecast in a Wall Street Journal interview. Company spokesman Simon Sproule confirmed it. To contact the reporter on this story: Jae Hur in Singapore at jhur1@bloomberg.net

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