The week’s biggest mover on the weekly Automotive MMI® was the price of US palladium bar, which saw a 6.3 percent increase as the South African mineworkers strike continued. This comes on the heels of a small decline in US palladium bar the week prior. The price of US platinum bar rose 4 percent this week.
Earlier this week, wage talks collapsed between top platinum producers and South Africa’s Association of Mineworkers and Construction Union (AMCU), dashing hopes that a six-week-long strike would end soon. However, auto parts supplier Faurecia and German premium car maker Daimler AG downplayed the prospect of delivery bottlenecks for catalytic converters in the wake of a strike at the world’s top platinum mines, according to Reuters.
A spokesman for Daimler said the company manages raw material risks through various instruments, including the use of financial derivatives, helping it to smooth volatile market prices.
“With regard to the current strikes in South African platinum mines, we do not expect any short-term implications on platinum prices beyond the usual known volatilities in this market,” a Daimler spokesman said in a statement. “We also do not expect any short-term implications on the overall supply situation in the platinum market.”
US HDG prices were off slightly from a week ago.
The cash price of primary copper fell 0.7 percent last week on the LME, settling at $7,102 per metric ton. The copper 3-month price declined to $7,050 per metric ton after drifting 0.4 percent on the LME since last week. Closing out the third week of declining prices, the Chinese lead price dropped by 0.2 percent. Korean 5052 coil premium over 1050 sheet remained unchanged for the week.
The Automotive MMI® collects and weights 7 metal price points used in automotive production to provide a unique view into automotive metal trends. For more information on the Automotive MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.