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The Palladium Market

Palladium price drivers

An introduction to palladium

Palladium is primarily used as a catalyst in the automotive sector, mainly in gasoline-powered on-road vehicles, and has displaced platinum in some parts of on-road diesel engine autocatalysts. The second main use of palladium is in electrical components, specifically in multi-layer ceramic capacitors (MLCCs), as conductive pastes and in electrical plating.

From its humble beginnings in the 1970s and 1980s, the palladium market has grown to over 10 million ounces, mainly as a result of it being a substitute for platinum in autocatalysts for gasoline cars. Russian state stocks have dried up, whilst underlying global primary supply has hardly changed and palladium is now trading at a premium to platinum. However, with palladium overwhelmingly reliant on autocatalysts, accounting for 79% of demand, could this prove to be a 'boom or bust' situation?

Palladium price news and insights

The Palladium Standard – September 2022

15 September 2022 | Beresford Clarke

SFA (Oxford) launches its 2022 edition of The Palladium Standard featuring articles from James Steel at HSBC and Lakshya Gupta from SFA.

The impact on PGMs from Russia-Ukraine action

25 February 2022 | Beresford Clarke

Sanctions on Russia could impact PGM supply significantly.

Palladium price in context, 1980 to 2022

The Palladium Market 2022

Source: SFA (Oxford), Bloomberg. Updated September 2022.

Palladium market balance

 koz   2015 2016 2017 2018 2019 2020 2021 2022f
Primary palladium supply                
Regional                  
 South Africa   2,560 2,375 2,530 2,500 2,555 1,845 2,750 2,475
 Russia   2,605 2,555 2,740 2,670 2,870 2,810 2,585 2,710
 Zimbabwe   325 395 395 380 385 405 395 445
 North America   995 1,065 985 1,05 975 950 925 860
 Other   455 420 415 395 395 385 265 270
 Total   6,940 6,810 7,065 6,975 7,180 6,395 6,935 6,760
                   
Palladium demand and recycling
 Palladium autocatalyst demand              
  Gross Pd autocatalyst demand 7,590 7,935 8,145 8,305 8,455 7,440 7,595 7,850
  Pd autocatalyst recycling 1,605 1,605 1,920 2,035 2,175 2,010 2,380 2,465
  Net Pd autocatalyst demand 5,985 6,220 6,225 6,270 6,280 5,430 5,215 5,385
                   
 Palladium jewellery demand                
  Gross Pd jewellery demand 245 240 215 215 215 200 215 225
  Pd jewellery recycling 80 80 60 60 60 55 60 65
  Net Pd jewellery demand 165 165 155 155 155 145 155 160
                   
Industrial palladium demand 1,930 1,900 1,840 1,840 1,715 1,635 1,610 1,550
                   
Other palladium recycling 430 390 380 370 365 335 415 365
                   
Gross palladium demand 9,765 10,075 10,200 10,360 10,385 9,275 9,420 9,630
                   
Palladium recycling 2,115 2,180 2,360 2,465 2,600 2,395 2,855 2,900
                   
Net palladium demand 7,650 7,895 7,840 7,895 7,785 6,875 6,565 6,730
                   
Palladium market balance                
 Palladium balance (before ETFs) -715 -1,090 -780 -915 -605 -485 360 30
 Palladium ETFs (stock allocation) -665 -640 -375 -560 -90 -115 50  
 Palladium balance after ETFs -45 -450 -400 -355 -520 -370 310  
                   
Palladium price history                
 Palladium price (USD/oz)
691 613 870 1,030 1,538 2,194 2,397  
 Palladium price (GBP/oz) 452 457 674 773 1,205 1,707 1,739  
 Palladium price (EUR/oz) 622 555 768 874 1,375 1,922 2,022  
 Palladium price (CNY/oz) 4,333 4,082 5,861 6,827 10,641 15,117 15,471  
 Palladium price (ZAR/oz) 8,741 8,956 11,580 13,673 22,247 35,940 35,294  
 Palladium price (JPY/oz) 83,503 66,501 97,485 113,853 167,631 234,191 262,844  
                   

Source: SFA (Oxford). Updated September 2022.

The Palladium Standard

The Palladium Standard comprises analytical articles on those issues we believe will set the PGM agenda for the years ahead and is released annually in September on the eve of New York Platinum Week.

Linked palladium market reports

SFA (Oxford) provides regular bespoke market intelligence reports on palladium as well as in-depth studies on recycling, metal flows and price setting.

Meet the PGM team

Trusted advice from a dedicated team of experts.

Henk de Hoop

Chief Executive Officer

Beresford Clarke

Managing Director: Technical & Research

Dr Jenny Watts

Head of Clean Energy & Sustainability

Dr Ralph Grimble

Operations Director

Jamie Underwood

Principal Consultant

Carol Lu

Associate Principal Analyst: China

Thomas Chandler

Principal Market Analyst

Oksan Atilan

Consulting Automotive Analyst

Alex Biddle

Senior Mining Analyst

Sandeep Kaler

Industrial Demand Analyst

Yolandé Fourie

Senior Consultant Metallurgist

Nelsa Martins

Senior Technical Consultant

Daniel Croft

Precious Metals Analyst

Stephen A. Forrest

Retired Chairman

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