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Historic Shortages of Platinum, Palladium Loom
Disrupted supplies and growing demand threaten to create the biggest shortages in platinum and palladium in more than 30 years, says Johnson Matthey plc, the London-based specialty chemicals giant.
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Disrupted supplies and growing demand threaten to create the biggest shortages in platinum and palladium in more than 30 years, says Johnson Matthey plc, the London-based specialty chemicals giant.
Both noble metals are used in automotive catalytic converters, where demand has outstripped production for the past two years. Prices are currently about $1,455 per ounce for platinum and $825 for palladium.
In 2013 the global market shortfall between consumption and production was 940,000 ounces for platinum and 371,000 ounces for palladium, according to Johnson Matthey.
Bloomberg News says the company expects this year's demand-supply gaps will jump to 1.2 million ounces for platinum and 1.6 million palladium. Those levels would be the largest shortfalls since 1975 for platinum and 1980 for palladium, respectively.
The largest sources of the two metals are South Africa and Russia. Lengthy strikes by South African miners have hurt production in that country, and threatened sanctions against Russia also could tighten supplies.
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