Palladium Futures Index (PALLADIUM)

[Pro-Life]

Today on Kitco… BMO: Auto Sales Support Top Metals Pick Palladium
Wednesday December 11, 2013 9:34 AM

BMO Capital Markets says palladium its top pick in the metals sector, with support coming from growth in auto sales. The firm cites data showing that Chinese passenger vehicle sales in November were at 16.9 million units on an annualized basis, up 16% year-on-year. U.S. sales were an annualized 15.2 million, up 9% year-on-year, while Europe was largely flat. BMO expects auto production growth in China and the U.S. "to outpace industrial production in general for the next year or two at least, supporting palladium demand relative to other metals.” These two countries, whose auto markets mainly consist of gasoline-powered cars, tend to rely upon palladium for catalytic-converter systems, whereas Europe and its larger diesel-powered market is more exposed to platinum. On the supply side, BMO says production growth in South Africa is “somewhat offset” by expectations for a decline in both Russian production and stockpile draws. BMO anticipates “a deficit market for palladium for many years, which should support prices.”

By Allen Sykora of Kitco News; [e-mail]

http://www.kitco.com/news/2013-12-11/KitcoNewsMarketNuggets-December-11.html