Richard, I say Russians run-out of readily available Palladium! Big implication, by proxy they must be running short on nickel...Commodities are going-up!
FOCUS-Russia warns of more PGM export delays
08:01 a.m. Apr 16, 1998 Eastern
By Mike Collett-White
MOSCOW, April 16 (Reuters) - Russia poured more cold water on
expectations of a quick resumption of long-delayed platinum and
palladium exports on Thursday, with a leading official saying deliveries
may not start for weeks or even months.
Russia, which supplied 60 percent of the world's palladium and up to one
fifth of its platinum last year, has yet to deliver one ounce of either
rare white metal abroad in 1998, sending values on Western markets
soaring.
''It could be weeks, or months, before platinum group metals are
released on to the market,'' Valery Goncharov, department head at the
state precious metals reserve, told Reuters.
''Documents still need to be signed and issued, including export
licenses and others.''
Hopes of a solution to the precious metal impasse were raised on
Wednesday when officials confirmed that acting Prime Minister Sergei
Kiriyenko had signed a key government order setting out platinum group
metal export quotas for the year.
Previously the order had been described as the final hurdle to breaking
the deadlock, which has consumers -- ranging from jewellers to catalytic
converter manufacturers -- scrambling for cover by leasing metal and,
increasingly, seeking substitutes.
But the political vacuum in Moscow means further significant delays now
loom.
President Boris Yeltsin sacked his entire government last month, and
needs a prime minister in place before a new leadership can be formed.
The State Duma lower house of parliament is due to vote on Kiriyenko's
nomination for the second time on Friday, a week after having voted
against his candidature.
Sergei Gorny, deputy director of Russia's sole platinum group metal
export agency Almazjuvelirexport, said on Wednesday that the absence of
a government could hold up the final paperwork needed to allow exports
to flow.
Export licenses, for example, are issued by the Ministry of Foreign
Trade and Economic Relations. Mikhail Fradkov, previously head of the
ministry, was removed from his post along with the rest of the
government on Yeltsin's order on March 23.
Delays this year mirror major hold-ups in 1997, when exports of platinum
and palladium did not start until July.
The hold-up led to speculation among metal traders that Russia had run
down platinum and palladium stocks in recent years to boost state
coffers -- speculation the industry has frequently tried to play down.
''There will be no shortage,'' Goncharov said.
Almaz's Gorny added on Thursday that he saw no major changes in export
volumes this year over 1997 levels.
''Volumes this year are likely to be around the same as last year,'' he
said.
Russian officials are prohibited by law from disclosing details on
precious metals production, reserves and exports.
But leading platinum refiner Johnson Matthey estimates Russian 1997
palladium exports at 3.20 million ounces out of world supply of 5.65
million. Platinum supplies last year were pegged at 700,000 ounces out
of a global total of 4.77 million.
Russia's platinum and palladium sector is still heavily centralised,
with a single producer, Norilsk Nickel providing 95 percent of the
country's total output.
Gokhran is the sole purchaser of this metal, and Almaz the only
exporter.
((Moscow Newsroom, +7095 941-8520 moscow.newsroom+reuters.com))
Copyright 1998 Reuters Limited. |
