Market Nuggets: Supply Disruptions Could Deepen Barclays Forecast Palladium Deficit
27 October 2010, 9:19 a.m. By Allen Sykora Of Kitco News http://www.kitco.com/
(Kitco News) -- Barclays Capital says labor-related supply disruptions have the potential to widen its forecast for the supply/demand deficit in the palladium market. In its daily report, Barclays cites improving industrial and strong investor demand. On the supply side, the bank cites improvement in Aquarius Platinums output for platinum and palladium in the early part of the fiscal year that ends next June 30, but maintains fiscal-year 2011 production guidance. However, the National Union of Mineworkers says more employees have joined a four-week strike at the Anglo Platinum and Xstrata Matotolo mine. Given the ongoing recovery in underlying PGM demand, and our expectations for only modest mine supply growth this year and next, supply disruptions are likely to deepen our forecasted market deficit.
NKP Price at posting:
61.0¢ Sentiment: ST Buy Disclosure: Held
