Will increases in auto sales and geopolitical threats to palladium supply bring higher prices?
*CNBC, by Jaewon Kang, April 9, 2014
”Trading around $782 per ounce, palladium is mainly produced in South Africa and Russia. Ongoing strikes by miners in South Africa and unresolved tension surrounding sanctions on Russia could drive up the prices by triggering supply constraints.
Rising auto demand is also likely to fuel the rally.
‘We’re seeing real robust increases in auto sales in major markets, especially gasoline car sales in the U.S. and China,’ said Mu Li, senior commodity analyst at CPM Group. Palladium-made catalytic converters are used in gasoline cars, which dominate the U.S. and Chinese auto markets.
In fact, demand for catalytic converters will keep growing, as China, the largest automotive market in the world, continues to tackle its air-quality problems.”
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