Palladium hits record high above $1,600 per ounce

BENGALURU, Mar 19 (Reuters): Palladium hit its highest ever on Tuesday, crossing the $1,600 an ounce mark for the first time as news that Russia is planning to ban exports of precious metals scrap fuelled concerns over an already supply-constrained market.

Spot palladium was up 1.0 per cent at $1,600 an ounce at 1047 GMT, having hit a record high of $1,606 earlier in the session.

"There have been rumours that Russia would restrict exports of some scrap materials. When the market is as tight as palladium is, sometimes such news can take on more significance than it should," said Philip Newman, a director at Metals Focus.

"It comes back to the fact that you have an underlined tight market, where demand is far outstripping global supply."

Russia's trade and industry ministry last week said the proposed ban on exports of precious metals scrap and tailings would last from May 1 to Oct. 31. Russia is a major producer of palladium, which is used mainly in catalytic converters.

News that China, the world's biggest auto market, will enforce stimulus measures to boost its tiring economy has also helped the case for the metal, analysts said.