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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 impact on PGMs from Russia-Ukraine action

25 February 2022 | Beresford Clarke

Sanctions on Russia could impact PGM supply significantly.

Where next for palladium?

14 September 2021 | Stephen A. Forrest, Beresford Clarke

Read SFA's latest edition of The Palladium Standard which discusses current palladium market dynamics, price outlook, and feature articles from selected players, as well as our latest platinum and rhodium outlooks.

Russia-Ukraine conflict puts Pd and Rh automotive demand at risk

21 March 2022 | SFA (Oxford) & Heraeus – Edition 9

Will high US gas prices push people into BEVs and impact PGMs?

14 March 2022 | SFA (Oxford) & Heraeus – Edition 8

Russian invasion could accelerate platinum substitution into autocatalysts

7 March 2022 | SFA (Oxford) & Heraeus – Edition 7

Read more

Palladium price in context, 1980 to 2021

The Palladium Market

Palladium market balance

 koz   2014 2015 2016 2017 2018 2019 2020 2021f
Primary palladium supply                
Regional                  
 South Africa   1,870 2,560 2,375 2,530 2,500 2,555 1,845 2,670
 Russia   2,690 2,605 2,555 2,740 2,670 2,870 2,810 2,350
 Zimbabwe   330 325 395 395 380 385 405 415
 North America   1,055 995 1,065 985 1,035 975 950 1,000
 Other   460 455 420 415 395 395 385 335
 Total   6,405 6,940 6,810 7,065 6,980 7,180 6,395 6,770
                   
Palladium demand and recycling
 Palladium autocatalyst demand              
  Gross Pd autocatalyst demand 7,475 7,585 7,925 8,145 8,290 8,445 7,400 8,230
  Pd autocatalyst recycling 1,720 1,610 1,710 1,920 2,040 2,180 2,005 2,310
  Net Pd autocatalyst demand 5,755 5,975 6,215 6,225 6,250 6,265 5,395 5,9200
                   
 Palladium jewellery demand                
  Gross Pd jewellery demand 295 240 240 225 220 215 155 180
  Pd jewellery recycling 120 80 80 70 60 55 50 55
  Net Pd jewellery demand 175 160 160 155 160 160 105 125
                   
Industrial palladium demand 1,935 1,945 1,905 1,860 1,845 1,730 1,625 1,620
                   
Other palladium recycling 430 435 385 380 375 375 345 400
                   
Gross palladium demand 9,705 9,770 10,070 10,230 10,355 10,390 9,180 10,030
                   
Palladium recycling 2,270 2,125 2,175 2,370 2,475 2,610 2,400 2,765
                   
Net palladium demand 7,435 7,645 7,895 7,860 7,880 7,780 6,780 7,265
                   
Palladium market balance                
 Palladium balance (before ETFs) -1,030 -705 -1,085 -795 -900 -600 -385 -495
 Palladium ETFs (stock allocation) 930 -665 -640 -375 -560 -90 -115  
 Palladium balance after ETFs -1,960 -40 -445 -420 -340 -510 -270  
                   
Palladium price history                
 Palladium price (USD/oz)
803 691 613 870 1,030 1,538 2,194 2,397
 Palladium price (GBP/oz) 488 452 457 674 773 1,205 1,707 1,739
 Palladium price (EUR/oz) 605 622 555 768 874 1,375 1,922 2,022
 Palladium price (CNY/oz) 4,949 4,333 4,082 5,861 6,827 10,641 15,117 15,471
 Palladium price (ZAR/oz) 8,707 8,741 8,956 11,580 13,673 22,247 35,940 35,294
 Palladium price (JPY/oz) 85,003 83,503 66,501 97,485 113,853 167,631 234,191 262,844
                   

Source: SFA (Oxford). Updated September 2021.

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

Yolandé Fourie

Senior Consultant Metallurgist

Nelsa Martins

Senior Technical Consultant

Daniel Croft

Precious Metals Analyst

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