Palladium has hit a two-and-a-half-year high around $800 an ounce and the rally isn’t over yet. “Three quarters of palladium supply may be at risk of some form of disruption,” says HSBC’s James Steele. Russia accounts for 42% of supply and South Africa 37%.
Recurrent strikes at South African mines and rising costs have hit output there, while possible sanctions against Russia could cut exports. Many analysts also reckon that Russia’s stockpiles, which date back to the Soviet era, are close to depletion.
On the demand side, two South African banks have launched palladium exchange-traded funds, helping to drum [...]
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