Interesting insight into the Russian internal 'PGM wars'. Western dealers and users recognize that it is for palladium at least a war of words, probably reflecting depleted mining reserves, lower production, decreased stockpiles and struggles between government entities to extract the highest price and/or the best use of those remaining decreased stockpiles.-
"Major Russian producer predicts "sharp fall" in world palladium prices. Moscow, 16th February:
"The world's leading palladium producer, Russia's Norilsk Nickel and palladium market experts are concerned that high palladium prices may be followed by a sharp fall after prices surged from 600 dollars per Troy ounce (31.1grams) to 700 dollars on Wednesday [16th February].
"Palladium prices will plummet after the Russian Central Bank,which is the second biggest Russian palladium exporter after Norilsk Nickel, starts selling, first deputy head of Norilsk Nickel, Yuriy Kotlyar, told Interfax. The "idiot" prices for palladium are pulling up platinum prices which could also plummet, he said.
"Experts say that following their predictions of a price decline, investment funds and other exchange players will leave the market, making it less liquid.
"In this situation, Norilsk Nickel, the only Russian exporter that has already received a palladium export quota, is actively working on the market. "At such prices people sell everything they have. They use all their reserves to sell at high prices and then when prices fall they calmly wait," Kotlyar said. "I would really like Russia to sell all its quota and not sit on its supplies in the coming year," he said.
"Russian palladium enters the world market from three sources: Gokhran [the State Reserve], the Central Bank and Norilsk Nickel. The only supplier that does not need to get quotas is Norilsk Nickel, as it received a 10-year quota last year.
"Source: BBC Monitoring Former Soviet Union - Economic. Text of report in English by Russian news agency Interfax. Publication date: Feb 17, 2000 ¸ 1999, NewsReal, Inc."
From Kitco at kitco.com |
