Friday , June 24 2022

The new gold ?: Palladium prices are tanny and China is participating in the credit


Palladium prices have been reaching record levels jumping more than 9% on this year's New York Stock Exchange, which is the best performance this year is among the main metals. And bet investors that this race has just started, tells Bloomberg.

Growth factors

The market has a very positive baseline

According to the CPM Group, almost 70% of demand A palladium comes from the automotive industry. Metal, which is mainly used in catalytic converters, has benefited from the conversion of the automotive industry of diesel engines to gasoline. The change has triggered the demand in a market that currently has a limited supply.

Experts say that China fights against smog & # 39; it was another factor that contributed to the growing demand for Palladium, since strict pollution standards have led car manufacturers to use more catalytic converters.

Limited offer

"The market has a very positive base point (…) We have been dealing with the supply deficits that have been taking place for eight years, and that is expected to continue. Certainly, supply has been a problem ahead of excavation, as well as reducing current stocks, "said Maxwell Gold, director of the investment strategy at Aberdeen Standard Investments.

Market prospects, including Citigroup, increase price increases for the metal, which arrived this Friday around $ 1,170 each.

The production of palladium has to be very concentrated, as in the case of platinum. Russia and South Africa are currently producing around Three quarters of world's excavations. Production of its main production country, Russia, was 81 tonnes in 2017. The Russian company Norilsk Nickel is the largest producer of Palladium in the world, and accounts for almost 40% of world production.

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