Palladium prices have raced higher this week, reaching levels not seen for three months, as data from the US car manufacturing industry showed an increase in sales for November.
 
According to figures from Autodata, sales were up 14% last month, and the trend is expected to improve as US consumers bite the bullet and buy a new vehicle after waiting for an extended period, due to the recession and the bleak economic outlook. Barclays Capital also aided the price rise with its comment that initial indications from China show strong car sales for the month. As a result, palladium has stood out this week from other metals, which have suffered as a result of the eurozone crisis and its deleterious effects on sentiment.
 
In addition, new concerns about declining Russian stockpiles has driven prices higher, with government sources saying that Russian exports will drop to 150,000 ounces in 2012 and 2013. Moscow does not release official figures, so confirmation will be hard to achieve, but last month, Johnson Matthey released a report saying that the palladium market would be in a surplus of 725,000 ounces in 2011. The balance included estimated sales of 750,000 ounces from Russian state stocks, meaning the market would be nearly balanced without those supplies. If supply tightness does persist into 2012, then this sets up the possibility of more gains for palladium prices, although more bad news from the eurozone would still have a negative effect on the metal, as with all other assets.