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Supplies of palladium are expected to fall in 2013 as a result of lower output from Russia and the "diminishing likelihood of a significant increase in output from South Africa. Another year of solid autocatalyst and ..

15 Nov 2012

LONDON (Commodity Online): The palladium prices to average $650 an ounce in the the next six months, with a price range of $550-750/oz, said Johnson Matthey plc (LSE: JMAT), a British multinational chemicals and precious metals company.

According to the company, the balance of the palladium market will swing this year from surplus to a deficit of 915,000 oz deficit due to lower supplies, higher gross demand and less recycling.

"Supplies will contract mainly because of lower sales of Russian state stocks, forecast to drop by over 500,000 oz compared with last year, to 250,000 oz, while recycling will be constrained by subdued PGM prices. Gross palladium demand is predicted to rise to 9.73 million oz, driven by a return to positive net physical investment and higher autocatalyst purchasing," the British company said in the Platinum 2012 Interim Review.

Supplies of palladium are predicted to decline to a nine-year low of 6.57 million oz. Palladium supplies from South Africa are forecast to fall by 6% this year, to 2.40 million oz, in line with lower underlying platinum output. Newly refined palladium supplies from Russia are expected to decrease due to a change in the ore mix and falling average grades.

Supplies of palladium are expected to fall in 2013 as a result of lower output from Russia and the "diminishing likelihood of a significant increase in output from South Africa. Another year of solid autocatalyst and industrial demand is forecast, together with higher returns of palladium from end-of-life vehicle recycling," they concluded.


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