Platinum Group Metals Price Bulletin - 19th December 2011 to 23rd December 2011

Johnson Matthey London Base Prices at 0800 hrs, $/oz:

	Pt	Pd	Rh
Monday 19th December	1415	620	1400
Tuesday 20th December	1420	617	1400
Wednesday 21st December	1445	633	1400
Thursday 22nd December	1427	633	1400
Friday 23rd December	1440	662	1400

Season’s greetings to all our readers and best wishes for the New Year!

The platinum group metals are ending 2011 on a low note, with platinum and palladium around 25% off the year’s highs and rhodium almost 45% down since February. Last week’s liquidations, prompted by a drop in the gold price, Eurozone fears and a need for year-end cash, have made platinum and palladium look attractively priced and some industrial and speculative buying has come in to the market. However, sentiment is still volatile, causing day-to-day fluctuations and an uncertain direction; for the time being, the major PGM are reacting mainly to changes to the dollar and to gold.

Platinum

As usual when the price recedes, there has been good demand for platinum on the Shanghai gold exchange this week to support it. Meanwhile in South Africa, Lonmin finalised wage agreements with various mining unions, removing the threat of industrial action after some tough talk over the last few weeks.

Palladium

Shipments of palladium from Russia increased in November to 166,000 oz, indicating that further state stock sales are being made. We expect to see higher than average levels of shipments recorded again in December. Nonetheless, trade sentiment towards palladium appears stronger than for platinum at present and when the metal broke key resistance at $630 this week a surge of buying saw quite a sharp recovery in price.

Rhodium

Rhodium has remained weak as sparse buying, mainly from Asia, has easily been met by the weight of selling in Europe and North America. Prices of the other PGM remain dormant for now.

Johnson Matthey,
Orchard Road,
Royston,
Hertfordshire SG8 5HE,
United Kingdom