By Carli Lourens and Alistair Holloway Dec. 9 (Bloomberg) -- Platinum may trade at $1,370 an ounce next year, about 69 percent higher than today, and advance further in each of the following two years as producers cut output, Credit Suisse Group said. “The platinum industry will have to cut back supply sufficiently to stimulate a price recovery,” Credit Suisse said in a note today. “About 40 percent of producers are operating at a loss at current prices.” Platinum reached a record $2,301.50 an ounce in March and traded at $808.30 as of 8:19 a.m. in London today after global car sales plunged. Platinum is used in jewelry and autocatalysts. Lonmin Plc, the third biggest producer, was cut to “underperform” from “outperform” by Credit Suisse, which also rated Aquarius Platinum Ltd., the fourth-biggest producer, “underperform” as it initiated coverage of the stock. Lonmin is shutting mines, freezing expansion and firing staff after prices fell. Anglo Platinum Ltd., the biggest producer, is reviewing spending and Impala Platinum Holdings Ltd., the second biggest, said it can no longer proceed with its planned acquisition of Northam Platinum Ltd. on existing terms. Platinum supply will outpace demand until the end of 2009, Credit Suisse said. It expects the metal to trade at about $1,500 in 2010 and $1,580 the following year. To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.netAlistair Holloway in London at aholloway1@bloomberg.net

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