Palladium could see deficit in 2011 if Russia halts stock sales: Johnson Matthey

A halt in Russia’s sale of state palladium stocks could see the precious metal’s market fall into deficit in 2011, Johnson Matthey director Mark Bedford told press on Tuesday.

Speaking at the launch of Johnson Matthey’s interim PGM review at the London Stock Exchange, Bedford said that the sale of Russian state palladium stocks was key to the balance of the market.

“If this amount is not sold then palladium could be in a deficit in the market in 2011,” said Bedford. “We may see more Russian stock sales next year, but this is something which is coming to an end now and this will put pressure on the supply side for palladium."

Russia sold 960,000 ounces of palladium from state stocks during 2009, but analysts have warned that the in-flow of the white metal to the market from Russia may be coming to an end. (more)