According to the bank, prices of the metal, predominantly used in autocatalysts, tumbled from the all-time high of $2,290 an ounce they hit in March 2008 as car demand slid in response to the economic slowdown.

It fell as low as $732.50 an ounce last October, but has since recovered as demand for platinum jewellery in particular rose in China, bolstering prices.

Bank of America said the fall in prices has led to cuts in miners’ capital expenditure, which could lead to a supply shortfalls in future.

Margins of South Africa’s platinum miners, which account for three-quarters of global output, have been squeezed and producers have reacted to the deteriorating operating environment, for instance by reducing spending.

Most notably, capital expenditure has been curtailed, which is set to reduce potential platinum supply growth.

On the demand side, platinum consumption is set to benefit from the unfolding rebound in the global automotive sector, which should lead to higher autocatalyst offtake.