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Platinum and palladium deficits yield weak price response

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Speciality chemicals company Johnson Matthey expects deficits for both platinum and palladium to persist this year, researcher Peter Duncan has told ETF Securities' annual investment conference. However, the impact on metals prices is expected to be ‘muted’ over the coming months.

Platinum hit its lowest level in more than seven years last Wednesday at US$ 812.09 an ounce while palladium reached a five and a half year low earlier this month of US$ 449.55. 'Our view is that we don't really see much change from current price levels in the next few months,' Duncan stated. 'And we continue to be surprised by the lack of price response.'

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