Palladium futures jumped to the highest since 2001 as supply concerns mounted amid prospects for further sanctions against Russia, the world’s biggest producer.
The US and Europe are accusing Russia of escalating the five-month conflict in Ukraine by sending troops over the border to support rebels. Demand for palladium this year will exceed mine output by the most ever, according to London-based Johnson Matthey Plc, which makes a third of the world’s catalytic converters. A five-month labor strike crimped output in South Africa, the second-biggest source of the metal, helping boost prices 25 percent this year through yesterday.
“There is a lot of concern about palladium as imposition of more sanctions against Russia may affect supplies, which is already in a precarious state because of the strike,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, told Bloomberg Businessweek in a telephone interview. “Palladium will continue to remain supported.”
Chinese palladium bar saw the biggest upwards shift for the day, rising 0.5 percent to close at CNY 194.00 ($31.48) per gram on Thursday, August 28. The price of Japanese palladium bar remained steady at JPY 2,982 ($28.70) per gram. At $883.00 per ounce, the price of US palladium bar was essentially unchanged.
The price of Chinese platinum bar remained essentially flat at CNY 299.00 ($48.52) per gram. The price of US platinum bar flattened at $1,400 per ounce after two days of downward movement. The price of Japanese platinum bar steadied at JPY 4,772 ($45.93) per gram following two-days of increases.
Chinese gold bullion stayed flat at around CNY 254.90 ($41.37) per gram. The price of Indian gold bullion flattened at INR 28,002 ($463.78) after two days of improvement. The price of US gold bullion showed little movement on Thursday at $1,281 per ounce. The price of Japanese gold bullion ended a two-day climb, settling at JPY 4,286 ($41.26) per gram.
After a 0.3 percent increase, Indian silver finished the day at INR 42,838 ($709.50) per kilogram. Chinese silver gained 0.2 percent to finish at CNY 4,205 ($682.41) per kilogram. The price of Japanese silver held steady at JPY 650.00 ($6.26) per 10 grams. US silver held its value yesterday at $19.36 per ounce.