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Platinum in 'Stark Contrast' with Palladium as Mining 'Hamstrung'

Platinum in 'Stark Contrast' with Palladium as Mining 'Hamstrung'

Tuesday, 5/15/2018


PLATINUM WEEK in London has heard that prices are forecast to stabilize in 2018 as the metal gains from its correlation with gold but demand continues to suffer from the diesel scandal and a poor outlook relative to sister-metal palladium.Finding two-fifths of its annual end-use in autocatalysts to reduce harmful emissions from diesel engines, platinum has fallen 40% in price since news of 'test cheating' by European car manufacturers such as VW first broke in 2014.The price of palladium – nearly 80% of which goes into catalysts for gasoline engines – has meantime risen by one-third, overtaking platinum and setting new all-time record highs at the start of 2018.


"The stark contrast between palladium's strong fundamentals and platinum's lacklustre ones continued last year and into 2018," says the new Platinum & Palladium Focus 2018 from specialist analysts Metals Focus, launched in the City of London on Monday as part of the annual Platinum Week industry meetings, seminars and events."Such a divergent trend [has] fuelled a marked contrast between investor sentiment."2017's bull run in palladium saw wholesale dealers struggle to meet orders in what executives called a "tight market", with above-ground stockpiles set to shrink for the 7th year running in 2018 according to Metals Focus.Last year ended with 16 months' fabrication demand available in palladium, down from 25 months at the start of this decade.Platinum stocks are estimated at 13 months of demand, barely changed since 2013.