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A recent report from Citigroup says that palladium mine production will fall in 2014 as demand continues to rise, according to an article from the Northern Miner (subscription).
A recent report from Citigroup says that palladium mine production will fall in 2014 as demand continues to rise, according to an article from the Northern Miner (subscription).
As quoted in the publication:
The vast majority of this year’s losses stemmed from a six-month strike in South Africa. But flat-lining palladium production in Russia, a country that supplies about 40% of the world’s palladium, also contributed, say analysts at Citi Research, a division of Citigroup. What’s more, they say, they see “little prospect of any growth in Russian mine supply going forward.”
The analysts have calculated that over the last seven years, the above-ground stock of palladium has fallen by 40% from 19.71 million ounces to 11.93 million ounces and expect annual palladium deficits of 2.28 million ounces in 2014, 1.81 million ounces in 2015 and 1.82 million ounces in 2016.
On the demand side, the analysts point to stronger car sales in the United States and China, two markets that combined make up 40% of all vehicle production on the planet.