The London Platinum and Palladium Market (LPPM) said in its latest statement on Friday local time that the management committee had decided to cancel the certification of two Russian refineries after reviewing the qualified delivery list and that their metals would be removed from the delivery list.
After the announcement, the spot palladium price of the international benchmark jumped more than $200 to $2476 an ounce, up nearly 11% on the day.
The two Russian refineries that have been eliminated are Funigulidov Krasnoyarsk Nonferrous Metals and Prioksky Nonferrous Metals, whose metals will not be sold in the world's largest London market after April 8, the statement said.
However, those prior to the announcement will still be considered eligible for delivery, but it is necessary for the recipient to prove whether the metals were manufactured before this date.
Palladium is used by automakers in emissions systems to reduce carbon emissions. According to statistics, Russia produces 25-30% of the world's palladium.
At the end of last month, many buyers were already looking for alternative sources of Russian palladium. Hiroo Suzaki, president of South African metal producer Impala Platinum (Impala Platinum Japan), said he had responded to a large number of palladium inquiries.
At that time, Suzaki had also given buyers a "shot": "the loss of Russian supply will have a significant impact on the palladium market. Carmakers and other buyers usually sign off-take agreements every year, so it is difficult to suddenly increase production to meet the needs of new customers."
Last month the London Gold and Silver Market Association (LBMA) suspended the certification of all six gold refineries from the list of good shippers, restricting the entry of their gold and silver into the London market. LBMA had previously asked the refiners whether they had business ties with the sanctioned Russian entities.
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