Agoracom Blog

#Palladium prices top $1,600 to tally highest settlement ever and New Age Metals $ Owns North America’s largest primary #PGM deposit $ $ $ $

Posted by AGORACOM-JC at 5:58 PM on Thursday, September 12th, 2019


  • The company hosts North America’s largest primary PGM deposit
  • Updated NI 43-101 Mineral Resource Estimate of 2,867,000 PdEq Measured and Indicated Ounces, with an additional 1,059,000 PdEq Ounces Inferred

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By MyraP. Saefong Markets/commodities reporter

  • Palladium futures topped $1,600 an ounce on Thursday to finish at the highest level on record, shaking off recent data showing a decline in Chinese auto sales, as emissions standards fueled bets surrounding strong demand for the metal used in pollution-control devices.

“Palladium has witnessed a resurgence in price over the past two months, much in line with other hard assets such as gold, platinum and silver,” said Ryan Giannotto, director of research at exchange-traded fund issuer GraniteShares. “What distinguishes palladium is its unique position spanning precious and specialty industrial metals, and this latter characteristic has benefited the metal in the momentary detente in the U.S.-China trade conflict.”

President Donald Trump on Wednesday announced he would delay a tariff hike —from 25% to 30%—that was scheduled to take effect Oct. 1, until Oct. 15., “as a gesture of goodwill.”

The rally in palladium, which used in vehicle pollution-control devices, comes despite data this week from the China Association of Automobile Manufacturers which showed that China’s total auto sales fell 6.9% from the same month a year earlier to 1.96 million, according to Reuters.

Palladium for December delivery PAZ19, +3.65%  climbed $48, or 3.1%, to settle at $1,604.80 an ounce on Comex after tapping a high of $1,616.50. Prices for the most-active contract have never settled above the $1,600 mark, based on records going back to January 1977, according to Dow Jones Market Data.

The metal previously settled at a record $1,588.10 on July 10 of this year and has gained 50% in the year to date.

“Auto sales have slowed, but this is more than completely offset” by increased loadings per car for transport on China 6 emission standards and “real-world driving (as opposed to fixed-in-a-lab testing) in Europe, R. Michael Jones, president and chief executive officer of Platinum Group Metals Ltd. PLG, -1.16% told MarketWatch. “In the USA, strong SUV and truck sales are also creating continued demand.”

Annualized August auto sales in the U.S. were “better than expected” and up 2% year-over-year at 17 million vehicles, equal to a three-month average, analysts at Evercore ISI wrote in a note last week.

Looking ahead, aggressive interest-rate cuts “should be supportive to auto sales and palladium, as long as the risk-on mood continues…,” analysts at Zaner Metals said in a daily report Thursday.


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