Platinum Group Metals Price Bulletin - 11th July 2011 to 15th July 2011

Johnson Matthey London Base Prices at 0800 hrs, $/oz:

 PtPdRh
Monday 11th July   1734   774   2000
Tuesday 12th July   1724   765   2000
Wednesday 13th July   1744   771   2000
Thursday 14th July   1770   785   2000
Friday 15th July   1756   778   2000


The first half of this week saw platinum and palladium prices suffer with concerns over sovereign debt contagion in Europe being seen as generally negative for industrial demand. The appreciating dollar in the early part of the week put further pressure on commodity prices. However, the dollar itself soon came under pressure as minutes released from the last Federal Reserve meeting suggested that the struggling US economy may require a third round of quantitative easing. Growing concerns about the American debt crisis and a possible debt default led Moody’s credit rating agency to warn it may lower the country’s credit rating. The subsequent slide in the dollar helped push gold to new record high levels as a safe haven investment, rising to $1,594.16 on Thursday. This was positive for the pgm complex, with platinum and palladium both recovering their earlier losses.


Platinum

Supply-side concerns continued to give some support to platinum, and also palladium, this week. Tough wage negotiations are currently underway at two of South Africa’s major platinum producers, Impala and Northam. The National Union of Mineworkers (NUM) is demanding wage increases of between 13.5% and 14% on a one year deal at Impala while the company is offering between 6% and 6.5% over a three year deal. The NUM have also declared a dispute with Northam Platinum, indicating another potential strike.


Palladium

Palladium’s price slid in the early part of the week, partly in response to the stronger dollar, only to recover alongside gold and platinum later on. Mixed automotive news added to the wider uncertainty, with a slump in European sales for Renault but record half-year global sales for the VW group.


Rhodium

Rhodium remained quiet at $2,000, with limited buying interest easily covered by light selling. 



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