Palladium Futures Now at a 13-Year High

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Palladium futures climbed to a 13-year high on concern that global supplies will trail demand for the metal used in pollution-control devices in cars, exacerbating a deficit, Bloomberg News reported.

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Through Aug. 15, palladium jumped 25 percent this year following a five-month mine strike that ended in June in South Africa, the world’s second-biggest producer. The conflict in Ukraine spurred the US and European Union to impose sanctions on Russia, the top supplier.

Production will trail demand this year by the most ever after the strike, according to London-based Johnson Matthey Plc, which makes a third of the world’s catalytic converters. This month, holdings in exchange-traded funds backed by the metal rose to an all-time high.

Palladium futures for September delivery rose 0.3 percent to $897.10 an ounce at 10:17 a.m. on the New York Mercantile Exchange. Earlier, the price reached $902.75, the highest for a most-active contract since Feb. 22, 2001.

Closing at JPY 2,940 ($28.68) per gram on the Friday, August 15, Japanese palladium bar rose 1.4 percent to finish as the day’s biggest mover. The price of US palladium bar increased 0.3 percent to $879.00 per ounce. The price of Chinese palladium bar showed little movement last Friday at CNY 193.00 ($31.37) per gram.

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Friday saw the price of Chinese platinum bar drift down 0.3 percent to CNY 307.00 ($49.89) per gram after a couple of stagnant days. Following a quiet couple of days, the price of Japanese platinum bar fell 0.3 percent last Friday to JPY 4,832 ($47.14) per gram. The price of US platinum bar dropped by 0.2 percent to $1,460 per ounce after holding steady.

At JPY 4,321 ($42.15), the price of Japanese gold bullion finished the market day up 0.4 percent per gram. The price of Chinese gold bullion closed at CNY 259.81 ($42.23) per gram. Following a couple days of improvement, prices fell by 0.1 percent. US gold bullion stayed flat at around $1,313 per ounce. The price of Indian gold bullion remained steady at INR 28,709 ($471.54) per 10 grams.

Japanese silver finished the day down 0.5 percent to JPY 648.00 ($6.32) per 10 grams. The price of US silver rose 0.2 percent to $19.86 per ounce after a two-day drop. After a 0.1 percent increase, Chinese silver finished the day at CNY 4,265 ($693.17) per kilogram. Indian silver held its value last Friday at INR 44,225 ($726.39) per kilogram.

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