Following news that the United States is advising the Group of Seven (G-7) countries to explore penalties on Russian palladium exports, palladium prices rose over 7% on Thursday. Aiming to increase economic pressure on Russia among the continuing war in Ukraine, the Biden administration brought up the potential of these limits during a meeting with G-7 finance officials in Washington.
About 40% of the palladium used worldwide comes from Russia's Norilsk Nickel, the top producer of the metal. Sanctions on Russian exports might have a major effect on the market, which would raise prices and cause worries regarding more limited supplies. The action indicates a possible increase in economic policies against Moscow as the United States looks for fresh approaches to impede Russia's capacity to support its military operations. Important for many industries, including aircraft and electronics, palladium is a mainstay in automotive and industrial uses.
Following the news, trading activity of big mining companies including Sibanye Stillwater Ltd. (SBSW, Financial) also increased as investors assessed the effect of possible sanctions on the worldwide palladium market.
