LONDON – The price gap between palladium and its sister metal platinum needs to shrink as number one platinum producer South Africa requires a higher price for the metal to keep investing in new supply, Russia’s Norilsk Nickel said.
Norilsk is the number one producer of palladium, accounting for more than 40% of global output, and is also a leading supplier of platinum. Both metals are used to curb harmful emissions from cars.
While palladium prices have soared by more than a third in the last five years, platinum has slumped by more than 40%. It is now around $490 an ounce cheaper than palladium, against an average premium over the last 30 years of $435.
Neither metal is likely to see any major growth in global supplies within six years, after which new projects from Nornickel and other miners will start producing, the Russian firm said.
“There is some growth in production from 2025, while consumption will be rising for all upcoming years,” Anton Berlin, head of Nornickel’s marketing department, told Reuters.
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