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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 autocatalyst: A potted history

10 May 2024 | Daniel Croft

As autocatalyst recycling volumes have suffered a decline, Daniel Croft examines the current state-of-play of autocatalyst recycling, as part of SFA's annual publication The Platinum Standard.

SFA's expert view on the palladium price spike

18 December 2023 | Dr Ralph Grimble

The palladium price surged last week due to a convergence of positive factors. The Fed acknowledged the peak in US inflation during its press conference, leading to a more dovish outlook for interest rates and a weaker US dollar, supporting commodity prices.

Palladium price in context, 1980 to 2023

Palladium market balance

 koz   2016 2017 2018 2019 2020 2021 2022 2023f
Primary palladium supply                
Regional                  
 South Africa   2375 2530 2500 2555 1845 2755 2240 2390
 Russia   2555 2740 2670 2870 2810 2585 2790 2405
 Zimbabwe   395 395 380 385 405 395 420 440
 North America   1065 985 1035 975 950 840 740 770
 Other   420 415 395 395 385 265 270 270
 Total   6810 7065 6975 7180 6395 6845 6460 6275
                   
Palladium demand and recycling
 Palladium autocatalyst demand              
  Gross Pd autocatalyst demand 7925 8140 8300 8445 7435 7595 7730 7685
  Pd autocatalyst recycling 1710 1920 2035 2175 2010 2380 2095 2205
  Net Pd autocatalyst demand 6210 6220 6265 6270 5430 5220 5635 5480
                   
 Palladium jewellery demand                
  Gross Pd jewellery demand 240 215 215 215 200 215 225 235
  Pd jewellery recycling 80 60 60 60 55 60 65 70
  Net Pd jewellery demand 165 155 155 155 145 155 160 165
                   
Industrial palladium demand 1900 1840 1840 1715 1640 1655 1550 1540
                   
Other palladium recycling 390 380 370 365 335 415 365 350
                   
Gross palladium demand 10,065 10,195 10,355 10,375 9,280 9,470 9,505 9,460
                   
Palladium recycling 2180 2360 2465 2600 2395 2855 2525 2625
                   
Net palladium demand 7890 7835 7890 7780 6880 6615 6980 6835
                   
Palladium market balance                
 Palladium balance (before ETFs) -1,080 -775 -910 -600 -485 235 -520 -565
 Palladium ETFs (stock allocation) -640 -375 -560 -90 -115 50 -90  
 Palladium balance after ETFs -440 -400 -350 -515 -370 185 -430 -565
                   
Palladium price history                
 Palladium price (USD/oz)
691 613 870 1,030 1,538 2,194 2,108  
 Palladium price (GBP/oz) 452 457 674 773 1,205 1,707 1,707  
 Palladium price (EUR/oz) 622 555 768 874 1,375 1,922 2,003  
 Palladium price (CNY/oz) 4,333 4,082 5,861 6,827 10,641 15,117 14,157  
 Palladium price (ZAR/oz) 8,741 8,956 11,580 13,673 22,247 35,940 34,391  
 Palladium price (JPY/oz) 83,503 66,501 97,485 113,853 167,631 234,191 276,105  
                   

Source: SFA (Oxford). Updated May 2023.

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 Ralph Grimble

Operations Director

Lee Hockey

Precious Metals Expert

Dr Jenny Watts

Head of Clean Energy & Sustainability

Jamie Underwood

Principal Consultant

Rj Coetzee

Senior Market Analyst: Battery Materials and Technologies

Adele Rouleau

ESG and Critical Minerals Lead

Oksan Atilan

Consulting Automotive Analyst

Alex Biddle

Senior Mining Analyst

Dr Sandeep Kaler

Market Strategy Analyst

Daniel Croft

Commodity Analyst

David Mobbs

Head of Marketing

Joel Lacey

Sales and Marketing Specialist

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