Palladium hits 13-year high on supply worries, strong demand
By GCRU Gold News on Thursday, June 12 2014, 10:54 - Permalink
Palladium jumped to its highest level since early 2001 on Wednesday, benefitting from a five-month strike in South Africa and strong demand from the auto sector.
Palladium has risen 20% so far this year, underpinned by supply worries after a South African strike over wages took out 40% of global platinum output and hit the domestic economy. The country is the world’s second-biggest producer of palladium.
A fresh round of wage settlement talks between the main mine workers’ union and major platinum producers broke down on Monday, when the metal rose 1.7%. It touched a peak of $862.50 an ounce on Wednesday, its highest level since February 2001. Prices rose 0.8% to $859.75 an ounce by 3.03pm GMT.
"Palladium strengthened on the back of the strike situation in South Africa... the collapse of the mediation talks has been the main trigger, clearly indicating the supply situation is tightening,"