Palladium price fizzles as Russia tensions ease
London (Sept 30) Earlier this year fears of sanctions or retaliatory measures in the Russia-Ukraine crisis drove palladium from the $700-$750/oz range, where it had comfortably sat for some time, to just over $900/oz in early September. Russia is the world's top palladium and it was widely theorized broader sanctions - which have yet to materialize - might cut that supply and drive palladium prices higher.
But with fears of a wider conflict diminished as negotiations unfold in Eastern Ukraine amidst a tenuous ceasefire, palladium prices have come crashing down through most of September. In recent days the spot palladium price dropped well below $800/oz; at presstime the spot palladium price was creeping just over $765/oz, or more or less where it traded before fighting in Eastern Ukraine began.
The drop also brings palladium prices back to levels some analysts see as more sensible. Natixis' Bernard Dahdah has estimated prices around $820/oz this year and, next, $775/oz. And Standard Bank's Walter de Wet, a bit more bullish on palladium, also noted that the $900/oz range - at least this year - seemed a bit high, if there was still reason to expect it to trade that high down the road.