Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Dwindling Platinum & Palladium Supply Leads to Higher Prices

November 13, 2012 at 21:11 by Vladimir Vyun

Platinum and palladium jumped today on speculations that dwindling supply will lead to a deficit of the metals. Output from South Africa was significantly reduced by workers strikes and wage disagreement. Currently, tensions calmed down, but it is in no way guaranteed that conflicts will not escalate again. Production in Russia also slowed and there are talks that Russian stockpiles are almost gone.

Palladium supply is expected to be lowest since 2000 and lag demand by 400,000 — the biggest deficit since 2002. Consumption of palladium will exceed production by 915,000 ounces, most since 2000.

Platinum rallied from $1,555.40 to $1,581.25 per troy ounce as of 21:06 GMT on COMEX today, reaching the highest settlement since October 23. Palladium jumped from $602.30 to $634.00 per ounce, the highest spot price since October 19.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply