(Bloomberg) Palladium surged to a record, topping $1,900 an ounce, after South African mining companies halted operations in response to the country’s power cuts. Platinum also rose.
South Africa, the world’s biggest producer of platinum and No. 2 palladium supplier, faced a sixth day of rolling blackouts Tuesday. State utility Eskom Holdings SOC Ltd. is struggling with breakdowns at plants and heavy rains that have soaked coal used as fuel.
“Tight supply that potentially could get even tighter due to production problems in South Africa helps provide the underlying support,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S.