Platinum fell, heading for a second weekly decline, on concern about waning demand as the global recession deepens. General Motors Corp.’s 2008 sales dropped 11 percent, and Toyota Motor Corp.’s declined 4 percent as the economic slowdown curbed sales. Most platinum and palladium consumption is for catalytic converters to filter gasses in engines. “Concerns about economic growth and the slowdown in vehicle sales are likely to keep platinum prices under pressure,” Barclays Capital analysts led by Gayle Berry said in a note e-mailed today. Platinum for immediate delivery fell as much as 0.7 percent to $922 an ounce, and last traded at $923.50, down 2.8 percent for the week. Palladium slipped 0.5 percent to $184.25 an ounce at 9:28 a.m. Singapore time. U.K. car and truck production tumbled almost 49 percent in December, an industry group said yesterday. Auto sales in the U.S., the world’s largest car market, may reach a 27-year low this year, General Motors, the biggest U.S. automaker, said. The demand reduction has forced platinum mining companies in South Africa, which accounts for almost 80 percent of world supply, to reduce output. Anglo Platinum Ltd., the world’s largest producer, cut its expenditure plans by as much as 30 percent. Aquarius Platinum Ltd. in October reduced its output target for the year by 4.2 percent, and later suspended its Everest mine in South Africa for six months, blaming subsidence. “Beyond short-term weakness, upside potential still exists for prices longer term as production is scaled back in light of low prices,” said Berry.

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