The deputy chief executive of Russian pgm giant Norilsk Nickel has said that he expects prices to remain stable in the short term, even though speculators are trying to push them higher.

'The market will be at the same level during the next three or four months. But we also feel the speculators will play the market and prices are going higher. But it will stay stable for the next few months.'

With the value of palladium at a seven-year low ($210 an ounce) and platinum riding high at levels not seen for 20 years ($710 an ounce), Mr Finsky said that end-users of palladium, such as carmakers, were exploiting the price differential.

'We feel that mostly producers of catalytic converters use more palladium than platinum. Substitution will influence both applications after two years from now, not earlier.

'The spread between platinum and palladium prices now is very favourable for end-users and especially for converter producers. It's a huge spread.'