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Palladium, platinum on road to recovery Platinum and palladium this week returned to levels last seen in August, spurred by developments in US markets and pressure on South African producers. PLATINUM and palladium this week returned to levels last seen in August, spurred by developments in US markets and pressure on South African producers. CHARLOTTE MATHEWS Platinum was trading at $1537/oz at midday in Johannesburg yesterday while palladium was at $421/oz, both slightly off their recent highs on a stronger dollar. SA is the world's biggest producer of platinum, used in catalytic converters, with substantial additional demand from the jewellery industry and investors. SA is also a major producer of palladium, which is mined with platinum, and has similar sources of demand. But the palladium price has been depressed for many years by sales from Russian stockpiles - the size of which has never been accurately quantified. This week's rise in the prices was attributed to positive US vehicle sales data for last month and speculation that exchange traded funds in these metals could begin trading shortly in the US, James Moore of The Bullion Desk said in a daily market report. Frank McAllister, chairman and CEO of Stillwater Mining, the only substantial platinum group metals miner in North America with a substantial palladium component, said on Wednesday that palladium had fared best in the recent downturn. It was only 27% below its 2008 peak, compared with platinum, which was 32% below that peak, and rhodium, 73% lower. The divergence between the prices of platinum and palladium had narrowed recently, with palladium now 27,5% of the price of platinum compared with 18% in March last year. "We expect to see this price gap narrow further . as research from the past several years comes to market that increases the opportunity to substitute palladium for platinum and even rhodium," McAllister said. South African production last year would contribute 78% of the world's platinum, 35% of palladium and 86% of rhodium, despite production declining steadily since 2006. The decline reflected interruptions due to mine safety stoppages, shortages of electricity and water, a strong rand, aggressive union demands, insufficient capital expenditure on deepening mines, skills shortages and political involvement in mining. "Concerns about South African production have driven the stronger platinum group metals pricing we have seen over the past year," McAllister said. "Yet even today's $1276/oz basket price still leaves the cost structure and capital sustainability of many key South African mines at risk." The basket price refers to the average price received for the mix of platinum group metals mined in SA. Metal refiner Heraeus Precious Metals said that demand for palladium was expected to be sustained this year, with an increasing need from industry to reduce emissions, a booming Chinese economy, recovering US economy and more petrol-driven vehicles sold in Europe.
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Thanks for your input,i discuss these shares on my blogspot.The reason why i don't discuss them here any more is that it moves off the last thirty posts so soon and then all one work is lost and is only available in the archive section here which is difficult to find ,when its working properly that is.
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