Palladium Near 32-Month Highs On Supply Fears
By GCRU Gold News on Friday, May 2 2014, 20:52 - Permalink
Platinum prices remain largely unmoved by the breakdown in wage talks aimed at ending South Africa’s mine workers’ strike. But palladium is trading near 32-month highs on fears of potential supply disruptions.
In contrast to platinum, palladium prices are continuing to move up, supported by tensions surrounding Russia’s involvement in eastern Ukraine with the backdrop of South Africa’s continuing mine strike adding further impetus. More than 80 percent of global palladium production is concentrated in South Africa and the Russian Federation, with Russia accounting for nearly half of total palladium supply.
Worries about a potential disruption to supply of the metal from Russia in retaliation to western sanctions at a time when South African mine production is entering its fifteenth week of outage is driving the price higher. But analysts report supplies of Russian palladium remain steady.