South Africa's Eskom Short on Power, But Palladium, Platinum Prices Drop

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Platinum and palladium production dropped 13% in April 2013, according to a recent ETF Securities report, and South African power producer Eskom power saying that “demand exceeded supply by the largest margin since 2008, raising concerns about potential power shortages, which historically have led to sharply higher PGM prices.”

ETF Securities notes that Statistics South Africa has reported a sharp fall in PGM production in April from a year earlier, as the work stoppages stemming from union wage negotiations wreak havoc for producers.

Last week no deal was agreed upon.

today's metal prices - MetalMiner IndXSupply side issues are likely to remain the major driver of PGM prices in coming weeks as production uncertainty continues to exacerbate 2013 deficit expectations, the company notes.

That aside, platinum and palladium prices have actually fallen significantly in global markets this week, according to MetalMiner’s weekly Global Precious Metals MMI®.

Current Precious Metal Price Trends

The week’s biggest mover on the weekly Global Precious Metals MMI® was the price of Japanese palladium bar, which saw a 8.9 percent decline. This week marked the third in a row of declining prices for the metal. The price of US palladium bar fell 3.3 percent after rising 0.8 percent the week before. The price of Chinese palladium bar declined 3.0 percent over the past week.

The price of Japanese platinum bar fell 6.3 percent over the past week. This was the third week in a row of declining prices. Following a 3.6 percent increase in the week prior, the price of Chinese platinum bar fell 5.0 percent. The price of US platinum bar fell 3.7 percent after rising 3.2 percent the week before.

Japanese gold bullion weakened by 3.1 percent. Following a 0.9 percent increase in the week prior, the price of Chinese gold bullion fell 1.2 percent last week. The price of US gold bullion rose 0.5 percent after falling 0.3 percent during the previous week. The price of Indian gold bullion rose 0.2 percent over the past week. This was the fourth week in a row of increasing prices.

Japanese silver finished the week after falling 3.5 percent. The price of Chinese silver fell 2.9 percent after rising 0.8 percent the week before. The price of US silver rose 1.8 percent after falling 2.6 percent during the previous week. The price of Indian silver rose 0.1 percent after falling 0.9 percent during the previous week.

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The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

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