Russia to sell 50% less Palladium in 2012: GFMS
Russian Palladium sales are expected to drop by 50% this year, says Thomson Reuters GFMS. Russia is the largest Palladium supplier in the world with almost half of the world’s supply in the soviet nation.
In a Presentation in London, Bloomberg quotes GFMS’ Philip Klapwijk as stating that Russian sales of palladium from its inventories could drop to 400,000 ounces in 2012 compared to 800,000 ounces in 2011. The total global palladium stockpiles in the world currently comes to 11.5 million ounces, he added.
Russia is very important to the palladium market and investors closely watch for developments from the country in order to judge palladium price movements. In 2000, palladium prices surged to record highs after reports indicated that Russia will not be selling palladium from its stockpiles. However, prices fell later after it became clear that this would not be the case.
“The amount of palladium released onto the market by the Russian government decreased to 750,000 ounces in 2011 from 1000,000 ounces in 2010, feeding rumours that the Russian stockpile is now close to depletion. Government officials have indicated that this is the case. If it proves to be true, the palladium market will likely go into deficit in 2012, putting prices under upward pressure”, ETF securities writes in their latest report.
Source: Commodity Online