https://www.miningweekly.com
Business|Platinum
Business|Platinum
business|platinum

Palladium soars to record on tight supply, bets on China demand

16th November 2018

By: Bloomberg

  

Font size: - +

NEW YORK – Palladium surged to a record on bets that the Chinese auto industry will buoy global demand amid tight supplies of the metal used in vehicle pollution-control devices.

Spot palladium rose as much as 4.6% to an all-time high of $1 180.26 an ounce, capping a third straight gain. The commodity is up about 9% this year through Thursday, the best performance among major metals.

China’s new auto emissions standards are likely to boost demand for platinum-group metals, which include palladium, the World Platinum Investment Council said in a report Thursday. Citigroup has projected more production shortfalls, and said in a report this week that “extreme tightness” in the palladium market could help drive prices to as high as $1 300 in the second quarter of 2019.

“The combination of tightening emissions standards and continued auto-production growth means that China’s appetite for these metals has significant room to grow,” said Brendan Clifford, manager of investor development at the platinum council.

The tightness in supply has created a lucrative business of lending the metal, spurring withdrawals from exchange-traded funds. Consumers of the metal, which is used mostly to curb pollution in gasoline-fueled vehicles, have turned to the lease market for supply.

The rise in prices has attracted the attention of hedge funds. Money managers boosted their net-long position in palladium futures and options to the highest since March last week, according to US Commodity Futures Trading Commission data released Friday.

Spot palladium advanced 2.7 percent to settle at $1 157.98 on Thursday in New York.

Edited by Bloomberg

Comments

Projects

Image of lithium ore stockpile
Lithium conversion plant, Australia
Updated 1 hour 46 minutes ago By: Sheila Barradas
Aerial view of the Amapá mine
Amapá iron-ore project, Brazil
Updated 1 hour 46 minutes ago By: Sheila Barradas

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.125 0.161s - 106pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: