Palladium At New 18-Year High In Uk

Palladium fixed at a fresh 18-year high yesterday amid tightening lease rates caused by Russian political uncertainties and its failure to export any metal this year.

The white precious metal fixed at $334.00 an ounce, up on Monday afternoons $326.50 and approaching the all-time high on Reuters charts of $335.00 in March 1980.

Palladiums gains once again came mainly during Asian trade, where futures markets have helped drive the underlying price higher ahead of Fridays expiry in the April spot contract.

Traders have said the superheated palladium price and lease rates which have surged back above 100 per cent for one-month palladium could make it difficult for those who are short in the futures market to meet their contracts to sell. Tokyo traders said yesterday that Russias platinum group metal (PGM) export agency, Almazjuvelirexport (Almaz), had yet to notify them of when 1998 PGM supply contracts will be negotiated.Russia was the worlds main palladium supplier in 1997 but has failed to export metal this year amid political difficulties.