Sibanye-Stillwater has asked the US to consider imposing a tariff on Russian palladium imports to support the long-term viability of US supplies, in a move that could increase volatility in palladium prices.
The petition filed by Sibanye adds another layer of uncertainty to prospects for platinum group metals (PGMs) after a rally in prices this year due to lower first-half production in SA and thin liquidity in the spot market.
“We believe that Russian palladium imports are being sold below market prices due to various factors, beginning primarily after the Russian invasion of Ukraine in 2022,” Sibanye CEO Neal Froneman said in a statement on the company’s website dated July 31.
“Obtaining relief from dumped and subsidised Russian imports will give Sibanye-Stillwater, its employees, and the entire US PGM industry, an opportunity to compete on a more level playing field,” he added.
A final decision on the petition is likely within 13 months.
Russia’s Nornickel, the world’s largest palladium producer with a 40% share of global mined output, declined to comment.
Sibanye, which has production assets in SA and the US, suffered its second consecutive full-year loss last year after writing down $500m of its US palladium assets amid low prices.
Spot palladium prices are up 31% so far this year, and the outlook for the rest of the year is positive for miners: analysts forecast in July that the palladium price would rise in 2025 for the first time in four years, aided by platinum’s rally.
“Though placing duties on Russian metal would not necessarily affect the market balance of palladium, it could result in the rerouting of global physical metal flows, leading to price volatility,” analysts at Heraeus said.
Russia and SA are the top suppliers of palladium to the US, according to the Trade Data Monitor. For Russia, China is the second-largest buyer of the metal after the US.
Russian palladium imports to the US increased 42% year on year to more than 500,000 troy ounces in January-May, according to Heraeus.
PGMs, used widely to clean exhaust emissions in petrol-powered vehicles, have so far avoided US sanctions imposed on Russian companies over the Ukraine war and any import tariffs announced by President Donald Trump.
Reuters
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