The tight supply of palladium in 2011 will encourage higher prices for the metal over the course of the year. Russian state stockpiles are rumored to be dwindling and may run out because of the increased industrial demand for the metal. In South Africa the ability to increase production is hampered by a lack of reliable electricity. These factors play into the rising expectations for palladium prices in 2011.
Weak auto sales numbers and the fears of a double-dip recession hindered the price of palladium in early July. However the metal has been rebounding due to better than expected earnings in the US, as well as on the promising news of European bank stress tests.
North American Palladium Ltd (PDL.TO), a Canadian precious metals company, has reported its Q1 net loss of C$14,6-million ($14,27 million). This is converted to 11 Canadian cents per share. 2009′s operating expenses of the company was only at C$738,000 but rose to C$18.2 million for the first quarter of 2010 due to production costs from [...]
Palladium was the only precious to be on the positive track on Monday, as the equity rally deteriorated the flight to safe haven investments. Palladium’s near term outlook remains bleak, as reports from Europe said that car registrations dropped 18 percent in February.
Exchange Traded Funds that deal in the precious metals have been seeing an increase in business, lately. ETF Securities said on Monday the amount of metal it holds to back its Physical Palladium exchange-traded commodity PHPD.L rose 12,628 ounces or 8 percent in the week to Feb. 6.
In the first six months of ’09, palladium’s value could range from $125 to $300 per ounce. The outlook for palladium is positive in some of its applications, however, a worsening economic climate and the possibility of a stronger US dollar could send palladium to as low as $125/oz during the next six months.
On January 5 palladium tumbled nearly 6 percent as the strong dollar knocked down all the precious metals. The metal hit a daily low of $178.50 an ounce, but was quoted at $180.00. On January 12 the metal picked up some steam, and rebounded to $191 per ounce.
Spot palladium rebounded on Monday, up more than 5 per cent from New York’s notional close of $168.00. Palladium hit $176.50 per ounce as technical buying emerged after demand worries stemming from an ambiguous auto industry vote hit platinum group metals on Friday.
Palladium is just another metal that is having a bad year, and according to an industry report things will not be looking up anytime soon. The outlook for palladium in certain applications is positive, however deteriorating economic conditions around the globe continue to impact price.
Palladium finally got some upside last Wednesday, when it rose 5 percent on the sentiment that the recent price slip in the metal was overdone. Prices for palladium have fallen 56 percent in the third quarter, dropped 34 percent last month alone.
Tuesday, March 8, 2011