Palladium and platinum prices jump after London market stalls Russian precious metals
Trade in two precious metals critical to global industry has been swept away by disruption caused by the war in Ukraine and Western sanctions against Russia.
The body that oversees the palladium and platinum market in London said on Friday it would ban the metal produced by two major refining companies owned by the Russian government. Metal prices soared. PA00 palladium futures,
rose 8.3% to around $2,407 per troy ounce after the suspension. Platinum futures contracts PL00,
rose 2.5% to $981.30 per troy ounce.
The London Platinum and Palladium Market, an industry group, announced on Friday that it was removing JSC, the Gulidov Krasnoyarsk non-ferrous metals plant and the JSC Prioksky non-ferrous metals plant from the list of refiners whose metal can be traded in London and Zurich markets. The LPPM said bars produced by the companies – known as Krastsvetmet and PZCM respectively – on or before April 8 can still be bought and sold. Bars and sponges made after April 8 will be blocked.
Spokespersons for the suspended refiners did not immediately respond to requests for comment.
Russia is a major supplier of both metals, which are used in the automotive industry alongside platinum’s role in jewelry. Palladium in particular has been in high demand in recent years thanks to tightening global limits on harmful emissions from cars. Palladium goes into catalytic converters which reduce harmful substances in the exhaust gases of gasoline-powered cars.
The palladium and platinum rally is the latest example of sudden movements in commodity markets triggered by the war in Europe. The conflict has disrupted grain exports from Ukraine, a breadbasket. Prices for oil, natural gas, coal, uranium and nickel have surged under threat of disruptions to shipments from Russia, a commodity superstore.