"The Company’s recycled volume of palladium, platinum and rhodium (including tolled ounces) in the first quarter 2013 totaled 154,200 ounces, a Company record by a significant margin. This compares to 107,300 ounces recycled during the first quarter of 2012. New suppliers account for the bulk of the surge in recycling volume, although higher PGM prices were also a factor."
Quite a jump and IMO real significance is surge in new suppliers. As more and more companies realize that there is real money in recycling, SWC operation will grow and grow.
IMO weakness in PD is a demand issue -
- Ford (fusion and focus) success comes at expense of Honda
- Russia seems to have "found" plenty of PD to export
- India yesterday on BBC news reported the first decline in auto production in 20 years. Usual growth is 10%+.
- Europe continues headed downward - Even Germany has slowed to a crawl.
- Don't see too much news about South America autos - Brazil March slightly up from last year but JAn/Feb were awful.
- Recycling expanding rapidly.
Take these widespread issues into account, not just SA power/labor issues.
I was surprised by the strength in recycling in that most "junk yard" and scarp dealers are believed to stockpile. Then again, as I have posted, there are numerous stories about cat converters on cars being stolen. So maybe .....