Palladium continues to rise by blocking Russian smelters in London and Chicago

Palladium continued its rally after the London market and Chicago suspended trading at two Russian state-owned smelters, fuelling fears of supply disruptions in Russia.

It is reported that on Friday, the London Platinum and Palladium Market (LPPM) removed Krastsvetmet and Prioksky non-ferrous metals plants from its platinum and palladium delivery and certification list because of the conflict between Russia and Ukraine. LPPM's statement reversed a decision a month ago to continue to allow Russian smelters to supply precious metals to the trading center. Subsequently, the Chicago Mercantile Exchange suspended guarantees and contract delivery for specific platinum and palladium brands at the two smelters until further notice.

Palladium rose as much as 10.5 per cent to $2472.55 an ounce on Friday, the biggest intraday gain since March 7. Russia, which accounts for 40 per cent of the world's newly mined palladium, is crucial to the market. Palladium is mainly used in catalytic converters of gasoline vehicles.

As of press time, palladium rose 3.09 per cent to $2500.76 an ounce, up 30 per cent so far this year.