Page 79 - MEX-Yearbook-2017

Vivek Risal
(The author is associated in the capacity of Manager in
the Research & Development Department of Mercantile
Exchange Nepal Limited. He is also a part of the Editorial
Team of the MEX Year Book. He can be contacted at
r&d@mexnepal.com)

Matthey, although the supply inclined from Apart from May,
6,444,000 ounces in 2015 to 6,485,000 ounce, palladium has posted a
the demand also inclined from 9,260,000 positive return for every
ounces in 2015 to 9,685,000 ounce in 2016. This
resulted in a net deficit level in the inventories. month leaving
Due to the preceding scenario, palladium prices the heavyweights including
are expected to remain supported for quite some
time. gold, platinum
Market pundits see the robust price of palladium &
continuing to surge for some time further given
the negligible change in the supply and a solid silver behind.
rise in the demand as discussed earlier. In a
Reuters poll conducted in July, 26 analysts and MEX NEPAL YEAR BOOK 2017 | 78
traders had stated that the average price for 2017
was predicted at $811 per troy ounce. However,
the price has not only crossed the $811 levels
but has also attained a 16-year high. The prices
have registered the highest annual average price
going back three decades. Standard Chartered
shares the sentiment stating that “We remain
constructive on palladium’s outlook,” according
to the banks analyst, Suki Cooper. “Not only is
the market set to deliver a deficit this year, but
it looks set to be undersupplied over the coming
years.”