Palladium may be in short supply in 2010
Monday, 28 June 2010
MOSCOW, June 27 (Commodity Online): Increased demand from investors and steady depletion of Russian state stockpiles are likely to bring the palladium market into balance in 2010.
According to UK investment bank Barclays, despite an expected increase in supply, strong growth in investment demand, coupled with the possible exhaustion of Russian state supplies has the potential to balance the market in 2010, and even drive it into deficit.
"Perhaps more importantly, if Russian state stocks are close to depletion or released slower than historical levels, a more constructive fundamental base is likely to emerge longer term."
Analysts pointed to data showing the palladium market to be in surplus the past nine years by 500,000 oz to 2 million oz. Without Russian stockpiles, the market would likely have been in deficit in three of the last five years.
According to UK investment bank Barclays, despite an expected increase in supply, strong growth in investment demand, coupled with the possible exhaustion of Russian state supplies has the potential to balance the market in 2010, and even drive it into deficit.
"Perhaps more importantly, if Russian state stocks are close to depletion or released slower than historical levels, a more constructive fundamental base is likely to emerge longer term."
Analysts pointed to data showing the palladium market to be in surplus the past nine years by 500,000 oz to 2 million oz. Without Russian stockpiles, the market would likely have been in deficit in three of the last five years.