Palladium reserves in Russia, the world’s largest producer, are “pretty much exhausted”

Palladium in USD, 2 Years – (Bloomberg)
Tightness in the platinum and palladium markets has begun to see prices move higher.
Palladium reserves in Russia, the world’s largest producer of the metal, are “pretty much exhausted” and sales this year may be only 3 metric tons, according to Johnson Matthey Plc.
Russian inventory sales dropped 68 percent to 250,000 ounces last year from 775,000 ounces in 2011, according to Johnson Matthey.
Shrinking Russian stockpiles at a time when output is falling helped send the metal into the biggest shortage in 12 years.
Output in South Africa, the second-biggest producer, was disrupted by labor disputes and strikes, while lower grades contributed to a decline in Russia.
Palladium for immediate delivery has risen again today and is trading at $741/oz. Palladium, last quarter’s best-performing precious metal, has risen 5.4% this year after advancing 7.5% in 2012.
Palladium supply declined 12% in 2012 to 6.48 million ounces on the South African disruptions.

Platinum in USD, 2 Years – (Bloomberg)
Platinum supply dropped 10% to 5.68 million ounces because of declines in top producer South Africa, coming to less than the 5.84 million ounces forecast in November, according to Johnson Matthey.
Zimbabwe was the only major producing nation to increase output, Duncan said.
Platinum supply probably will be curbed further because of difficulties in South Africa, while auto catalyst demand is expected to stay “flat” this year, before a “much stronger” 2014, according to JM.



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