Pretoria News - - BR NEWS -

AN­GLO Amer­i­can Plat­inum said the rally in pal­la­dium wasn’t a bub­ble and could have fur­ther to run as China rushes to curb ve­hi­cle emis­sions. A sup­ply deficit of about 1 mil­lion ounces will un­der­pin prices un­til car­mak­ers start sub­sti­tut­ing pal­la­dium with plat­inum, Amplats chief ex­ec­u­tive Chris Grif­fith said in an in­ter­view at the African Min­ing Ind­aba in Cape Town. “That’s a mas­sive short­fall, and that’s mak­ing prices rise,” Grif­fith said. “It’s not a bub­ble and there is noth­ing strange that’s hap­pen­ing.” MMC No­rilsk Nickel PJSC, the world’s big­gest pal­la­dium pro­ducer, last week said fi­nan­cial spec­u­la­tors had cre­ated a bub­ble in the mar­ket. Pal­la­dium has ral­lied 75 per­cent over the past 12 months as min­ers strug­gle to in­crease sup­ply at a time when more strin­gent pol­lu­tion con­trols boost us­age, es­pe­cially in China. The metal is a key part of car cat­a­lysts, which fil­ter toxic fumes. “It’s just the fundamenta­ls of sup­ply and de­mand and it’s dif­fi­cult to see in the short term how that changes,” Grif­fith said. As stock­piles of the metal run down, prices have been ris­ing. Pal­la­dium climbed to about $2 400 (R35 802) an ounce in Lon­don. | Bloomberg

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