Platinum Group Metals Price Bulletin - 30th August 2010 to 3rd September 2010

Johnson Matthey London Base Prices at 0800 hrs, $/oz:

 PtPdRh
Monday 30th August   1538   507   2125
Tuesday 31st August   1514   492   2125
Wednesday 1st September   1527   506   2125
Thursday 2nd September   1540   522   2125
Friday 3rd September   1555   525   2125


With investors reeling from the worst August since 2001, the dollar weakened and gold rallied to within shouting distance of its all-time high. Investors’ "herd" mentality gave renewed strength to platinum and palladium despite August sales reports raising concerns about the recovery of the U.S. auto industry.


Platinum

With no LPPM price fixes on Monday (the UK was on holiday), platinum trod water but then came under pressure as news leaked that auto sales in the west during August were among the slowest on record. Offsetting this, however, were threats to South African production, the NUM proposing solidarity strike action, encompassing all mines, and miners at Northam Platinum also threatening to strike for a 15% increase in wages. As the NUM sympathy strike was put on ice, platinum strengthened on good sales figures for the Asian car markets - Chinese passenger car sales up 60% compared to August 2009 and Japanese sales up almost 50%.


Palladium

Dipping below $500 briefly on the disastrous U.S car sales reports, palladium quickly recovered on the more positive news out of Asia.


Rhodium

Good buying interest in the Far-East was countered by selling pressure in Europe, rhodium prices remaining stable all week.



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