Ivanhoe Mines Ltd T.IVN

Palladium Price Sction

[bloomfield18]

Up another $42 oz today. Currently bid $1516, ask $1541 oz. This is due to the threat of widespread strike action in South Africa, exacerbating an existing supply deficit in palladium. Shorts are covering. You would suppose once the threat of strike action recedes, prices should fall back. Unless marginal producers,  skirting a very thin line of profitability  (which is most of them) decide to throw in the towel. That depends on how long the strike continues. Then a persistent supply deficit would turn into long term acute shortage. It demonstrates the delicate state of balance in the PGM market. The possibility of loss in a single country’s production for a few months, plunges the entire market into panic mode. There is no one available to pick up the slack. End users rush to ensure supply, driving up prices rapidly.

https://www.cnbc.com/2019/02/25/gold-markets-us-china-trade-dollar-palladium-in-focus.html