Palladium is providing a useful alternative to platinum for automakers looking to reduce costs in developing automotive catalysts.

While platinum is still used in the diesel sector, palladium is becoming increasingly used in petrol catalysts to reduce costs.

“Automakers have replaced most platinum with palladium,” said David Jollie, Johnson Matthey precious metals market analyst.

Recent Figures from Johnson Matthey indicate that the demand for palladium autocatalysts increased by ten per cent during 2007.

Mr Jollie told Mining Weekly that rhodium is now being carefully used in standard automotive catalysts because of its record price.

While it still remains an important metal in controlling nitrogen oxide emissions, automakers can only reduce their rhodium usage by a certain amount.

Mr Jollie said that the price of rhodium had dropped by $1,000 during July because of a slowdown in the automotive market in the US.

The price was also influenced by the increase in rhodium production in South African mines and revealed that the market was more vulnerable to daily price movement than platinum.

Source: miningweekly.com

Palladium is on the move in Russia, one of the worlds major suppliers. The Russia United Company RUSAL has been discussing the full buyout or a even merger with the diversified miner, Norlisk Nickel, who have palladium and platinum operations.

According to Vedomosti Business Daily, Viktor Vekselberg, a billionaire shareholder in RUSAL, said that the firm was in talks with Vladimir Potanin who owns 25 per cent in Norilsk.

“I met Volodya (Vladimir Potanin) before the New Year. Volodya in general believes that such a merger would make sense but there are many details we need to discuss and understand to see how such a big deal can be structured,” Vekselberg said. “Sooner or later we and Potanin will reach agreement,” he added.

RUSAL has already agreed to buy Mikhail Prokhorov’s 29 per cent stake in Norilsk in exchange for 11 per cent of RUSAL and a cash sum.

In December Mr Potanin had declined his right of first refusal to buy Mr Prokhorov’s stake in Norilsk for $15.7 billion.

RUSAL has applied for regulatory approval in seven countries and expects the deal to close during the first quarter of 2008.

Norilsk has a market value of $46 billion and mines over half of the world’s palladium and one fifth of the world’s nickel.

Oleg Deripaska owns 66 per cent of RUSAL while 22 per cent belongs to the former shareholders of aluminium company Sual.

Palladium Future is looking bright with palladium futures increased trading volumes.

It seems that investors are now paying more attention to this often overlooked platinum-group metal.

Kyoei Bussan expects December palladium futures to trade in a Y1,200-Y1,500 range.

Palladium is currently trading at around 366USD an ounce.

Palladium is a rare silver-white transition metal of the platinum group to which it resembles, it is extracted from copper and nickel ores and is primarily used as an industrial catalyst and in jewelry. it is becoming increasingy more popular with jeweler manufacturers due to it being softer than platinum yet looks just as white and clean.