Palladium rises, platinum extends loss on Japan quake

Palladium for immediate delivery rebounded from the lowest level since November 30, while platinum extended its decline to a three-month low, as investors gauge the impact of Japan’s strongest earthquake on demand.

Japan, struck by the 9.0-magnitude temblor, tsunami and subsequent nuclear crisis, consumes 15 per cent of global demand for the metals, used in auto catalysts, according to Barclays Capital. Toyota Motor Corp has closed its plants in the country through today, while Honda Motor Co and Suzuki Motor Co also halted operations. The metals “are likely to bear the greatest effect in the short term,” Barclays analysts including Gayle Berry wrote in a report. “Although auto-catalyst demand will be hit, some production can be relocated overseas, but Japan is also a significant consumer of platinum jewellery.” Cash palladium increased 1 per cent to $711.25 an ounce at 11:05 am in Singapore, after slumping 5.6 per cent yesterday, the biggest drop since February 22. Platinum weakened 1 per cent to $1,683 an ounce, following a 3 per cent decline.