Palladium unexpectedly rose to one and a half thousand dollars per ounce. A sharp drop in supply due to the increased demand from car manufacturers caused the price fall. Palladium is used in the assembly of exhaust systems of machines. It is necessary to use this metal in order to comply with all emission standards.
According to Bloomberg, wholesale prices for palladium have risen to $ 1,505. Contracts for the metal supply in March have grown by 0.8%, stopping at around 1,465 US dollars per ounce.
Norilsk Nickel (Russia) and Amplats (South Africa) benefit from the positive trend of the metal. These two companies account for about 80% of the world production.
Analysts expect February to be the seventh month in a row, which palladium will close with the growth.
According to the analysts at Citigroup, the price could rise to $ 1,600. The price will strike a balance against the background of the sharply increased demand.
However, many experts note that the rise in prices will be short-lived, since in Europe, America and China the market is in a difficult situation, and the sales growth is declining.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade