DJ Palladium At $290-$390/Oz In Coming Months -Johnson Matthey
JMPLY | Quote | Chart | News | PowerRating -- Palladium will trade between $290 and $390 a troy ounce in the next six months, helped by forecasts of increased vehicle sales, but the direction of the dollar will also play a part, specialty chemicals company Johnson Matthey PLC (JMPLY) said Tuesday.
It also said the palladium market will be in suplus by 655,000 ounces in 2009, due to an expected 3.8% drop in demand in 2009 to 6.52 million ounces.
But demand for the metal will increase in 2010 if the car market begins to improve as forecast. Palladium is used in autotcatalysts, which clean car exhausts.
If that spurs funds to invest in palladium the metal could rise to as much as $390/oz, Johnson Matthey said. But if gold prices fall or the dollar strengthens it could trade down to $290/oz, it said.
Total supply of palladium will fall by 1.8% or 135,000 ounces this year to 7.18 million ounces, Johnson Matthey. That includes the sale of 960,000 ounces from Russian state stocks.
Output will fall in North America and Russia but palladium sales from South African producers will increase, it said.
Demand from autocatalysts in 2009 will fall by 12.7% to 3.90 million ounces, Johnson Matthey forecasts. The fall is largely in North America and Japan, while demand from autocatalysts in China will rise by 135,000 ounces this year, it said.
Palladium jewelry demand in 2009 will rise to 920,000 ounces, with an increase in all regions.
-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483; devon.maylie@dowjones.com
(END) Dow Jones Newswires
11-17-09 0800ET
For full details on (JMPLY) JMPLY. (JMPLY) has Short Term PowerRatings at TradingMarkets. Details on (JMPLY) Short Term PowerRatings is available at This Link.
- DJ PRECIOUS METALS HIGHLIGHTS: Top Stories Of The Day - 01/27/10
- * Johnson Matthey Opens Up 0.5% After Trading Update - 01/27/10
- DJ Johnson Matthey Sees FY Trading Above Views, 3Q Performed Well - 01/27/10
- * Johnson Matthey Sees FY Trading Above Views - 01/27/10
- * Johnson Matthey 3Q Sales Excl Precious Metals For Environmental Tech Sector Up 22% - 01/27/10
- More News >>
