960405

London precious metal

prices higher trend

LONDON: Prices for a rare precious metal soared on Thursday as most other markets were winding down ahead of the long Easter weekend.

Producer prices for ruthenium jumped due to strong demand for the metal in a new high-tech device used in ammonia production.

In other commodity markets, white sugar marched higher on supply tightness, crude oil prices stabilised after a frenzied rally and U.S. cattle prices shot up.

Precious metals refiner Johnson Matthey boosted its base price for ruthenium on Thursday to $55 per ounce from $38 two days ago.

Two years ago prices for the metal -- which is mined along with platinum and palladium -- had sunk to $15 an ounce.

Ruthenium replaces industrial metals in a new catalyst for the production of ammonia, mostly used in fertilisers.

"It's really only in the last six months or so that it's begun to be commercialised on a big scale," said Jeremy Coombes, general manager of marketing for Johnson Matthey.

Volume was muted in many markets ahead of the Easter holiday, but London white sugar prices continued their rally, ending the week about $23 higher.

London's May futures contract added over $6.00 on Thursday, fuelled by bullish sentiment. Supplies are expected to be tight into the summer months, traders said.

On the energy markets, Benchmark North Sea Brent crude futures stabilised at around $20.00 per barrel after hitting a three-year high of $20.30 earlier this week.

Some analysts believe market support is beginning to erode amid rising supply and falling demand.

"We've already seen the highs for this year. We'll see progressively lower trading ranges and the fourth quarter is quite bearish," said Mohammed Abduljabar, senior economist at Washington-based Petroleum Finance Company.

U.S. grain prices opened mixed amid nervous sentiment after roaring to new all-time highs on Wednesday.

But live cattle prices rallied sharply on the Chicago Mercantile Exchange on investment fund buying. The October futures contract hit a new contract high of 64.525 cents/lb. Some leading commodity prices at 1645 GMT.-Reuter