Wednesday, April 24th 01:33 PM IST

Unusual surge in Russia's Palladium shipments to Switzerland: Barclays

# palladium  # Barclays  # Russia  # mining  

Total palladium shipments to Switzerland more than doubled y/y and increased five-fold m/m, rising to 320koz, skewed heavily towards powder as most of the Russian shipments were in powder form as opposed to semi-manufactured form.

LONDON (Bullion Street): Russia's palladium shipments to Russia has risen nearly thirty fold on a month-on-month basis and three-fold on a year-on-year basis to 292koz, the highest since January 2010 after a prolonged lullin the trade data, according to Barclays Research.

"This March’s shipment is both large and unexpected as March shipments over the past 10 years have averaged 55koz. Shipments from Russia last year fell to their lowest in 22 years; however, the data for March highlight that the element of surprise still exists," Barclays report added.

"Russian palladium shipments surprising to the upside capped price action last year and is likely to weigh upon prices again in the near term. Our market balance assumes a deficit of 700koz in 2013; thus, even after accounting for this surge, the market is set to remain in deficit. It will be key to track the data over the forthcoming months, as well as into Hong Kong, UK, and China, as to whether this is a temporary pick-up. "

Total palladium shipments to Switzerland more than doubled y/y and increased five-fold m/m, rising to 320koz, skewed heavily towards powder as most of the Russian shipments were in powder form as opposed to semi-manufactured form. Switzerland became a net importer of palladium as imports jumped in March while exports fell m/m to 63koz; the majority of imports came from Russia, Germany, Italy and the United States, which contributed 27koz in shipments. Exports to Hong Kong jumped more than three-fold to 26koz.

Total platinum shipments to Switzerland rose 11% y/y and 32% m/m, to 141koz. The largest shipment came from South Africa, which shipped about 110koz of platinum, more than three times as much as in February and the highest since September of last year. Switzerland remained a net importer of platinum, as platinum exports did not keep up with imports, rising 25% m/m and 43% y/y.

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