Palladium Market Update (March 22, 2012)

By Michelle Smith — Exclusive to Palladium Investing News

In the first week of February palladium prices broke the $700 mark for the first time since September. The metal had the pricing support of investors betting on supply issues, as a strike had halted production at the world’s largest platinum mine in Rustenburg, South Africa. Prices softened after Impala Platinum (OTC Pink:IMPUY,LSE:IPLA) announced an end to the labor dispute there.

Analysts are still expecting a strong performance for the metal in 2012, noting that weakness may be seen throughout the first half of the year. It is notable that China’s passenger vehicle sales have slumped, although the drop may be connected to the fact that its lunar new year festivities took place in January. Also to be taken into consideration is that China’s palladium imports fell 40 percent month-on-month in January.