Platinum Futures Rise on Demand in China; Palladium Gains
By Halia Pavliva
April 22 (Bloomberg) -- Platinum prices rose for the first time in five session on signs of increasing demand in China. Palladium futures jumped the most in a week.
Platinum imports in China surged 35 percent in March from a year earlier, said Tom Pawlicki, a metals analyst at MF Global Ltd. in Chicago, citing government data from the country. The metal gained as much as 2.3 percent, while gold rose as much as 0.9 percent.
“It is helping platinum to outperform gold and may also signal that jewelry demand in China is improving,” Pawlicki said in an e-mail.
Platinum futures for July delivery gained $24.40, or 2.1 percent, to $1,182 an ounce at 10:13 a.m. on the New York Mercantile Exchange. The price dropped 5.5 percent in the previous four sessions.
Palladium futures for June delivery rose $9.85, or 4.4 percent, to $232 an ounce. A close at that price would mark the biggest increase for a most-active contract since April 13.
Before today, platinum tumbled 43 percent in the past year, and palladium dropped 52 percent. The metals are used in pollution-control devices in cars and jewelry. Gold was down 3.8 percent in 12 months.
Dennis Gartman, an economist and the editor of the Sufflok, Virginia-based Garman Letter, said he is considering buying platinum and palladium, and selling gold on prospects for a “stronger auto market in the future.”
China’s government increased the amount it will spend on subsidizing the purchase of new vehicles by 67 percent in a bid to revive auto demand. The government will spend 1 billion yuan ($146 million) instead of the 600 million yuan budgeted for subsidies, the Ministry of Commerce and Ministry of Finance said today.
To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net.
Last Updated: April 22, 2009 10:16 EDT
