Norilsk Nickel Anticipating Palladium Shortage As Early As 2014; Nickel Spot Price Up

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Will we see a palladium shortage next year?

“Strong demand from the auto sector and an unpredictable supply from above-ground stocks suggest a physical shortage could take place in the palladium market as early as next year, an executive at the Russia’s Norilsk Nickel said on Thursday,” reports Reuters.

“Anton Berlin, Norilsk’s head of strategic marketing, also said a possible ban on metal shipments by Indonesia government could significantly reduce an oversupply of nickel, but the metal’s price may not receive a boost until huge stockpiles are sold. London Metal Exchange nickel stocks are record high above 250,000 tones.”

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The nickel spot price rose 1.3 percent on Thursday, December 5, making it the day’s biggest mover. After two days of falling prices on the LME, it closed at $13,520 per metric ton. After falling for two days, the nickel 3-month price rose 1.3 percent on the LME to $13,585 per metric ton. The Indian nickel cash price rose 1.2 percent after a two-day drop.

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Chinese stainless steel prices were mixed for the day. For the fifth day in a row, the price of Chinese ferro-chrome remained essentially flat. For the fifth consecutive day, the price of Chinese ferro-moly held flat.

The price of Chinese primary nickel inched up 1.1 percent. The price of Chinese 316 stainless coil continues to hover for the fifth day in a row. The price of Chinese 304 stainless coil saw little movement. The price of Chinese 316 stainless steel scrap remained essentially flat. The price of Chinese 304 stainless steel scrap held steady.