The Market Overview of Palladium and its Increasing Demand

Platinum: What is it?

Palladium is an element with the chemical formula Pd' and atomic number 46. It is a rare, gleaming metal that has a silvery-white colour.

The platinum group of metals, or PGMs, is a collection of elements that includes the elements palladium, rhodium, iridium, osmium, and ruthenium. Palladium has the lowest melting point and density of all these elements despite having the same type of chemical properties.

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Palladium is more volatile than other platinum metals, yet it is also incredibly malleable and simple to work with. Palladium and its compounds also work as alternatives for platinum in jewellery and electrical contacts since they are not harmed by the atmosphere at normal temperatures.

Export and Import Statistics for Palladium

The top palladium producers in 2021 were South Africa, Russia, Canada, the United States, and Zimbabwe. Russia, South Africa, the United States, the United Kingdom, and Italy are the top exporters of palladium, though. Whereas, the UK, the US, Canada, Hong Kong, and Switzerland were the top importers.

Palladium Price Trend

Palladium production costs increased during Russia's invasion of Ukraine (the country that exports most of the metal), but they stabilised in 2022 due to chip shortages and the growth of electric vehicles (EVs), which hampered the demand for automobiles. Given that the weather and floods have no longer affected the supply, analysts believe a palladium surplus in 2023 is feasible.

Although the Russian invasion of Ukraine caused palladium prices to reach an all-time high in March 2022, the prices rapidly stabilised as a result of the strengthening US currency and the ongoing drop in automobile demand.

Industrial Uses of Palladium

Over half of the palladium supply is used in catalytic converters for cars and other engines, which is where it is most frequently used. In comparison to other catalysts, this metal is the least expensive and most effective. Palladium is also frequently employed in multilayer ceramic capacitors, which are frequently found in electronic devices including computers, fax machines, and mobile phones. Palladium is also used to coat connectors for various devices.

In addition, palladium is used to create electrical connections, blood sugar test strips, jewellery, surgical equipment, and aviation spark plugs. The metal is also used to make concert or classical flutes of the highest calibre

Market Drivers

One of the main factors fostering the expansion of the global palladium market is the rate of urbanization's acceleration and the rise in lifestyle choices. In addition, it is anticipated that the growing demand from the adornment sector and the rising trend for traditional metals will contribute to the growth of the palladium market throughout the course of the projection year.

Additionally, the fact that some metals are used as jewellery during marriages and the increase in jewellery sales will naturally increase the demand for palladium, finally resulting in prospects for the palladium market to generate income in the near future.

Recent Developments in the Market of Palladium

• September 13, 2022:  Since the dollar rate increased in comparison to its main competitors on September 13th, damaging commodities and minerals, the price of palladium decreased. Palladium futures that are scheduled to expire in December 2022 fell 6.2 percent to USD 2,134 per ounce.
• April 25, 2022: Numerous industry analysts predict that the price of palladium will increase over the next two years (2023 and 2024), rising from USD 2,000 to USD 2.500 per ounce by the end of 2024.
• April 08, 2022: The admission of newly refined platinum and palladium from Russia was recently banned by the London trading system. The admittance to the biggest trade hub for metals was blocked by the London Platinum and Palladium Market as a move against Russia's interests due to the crisis with Ukraine.

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Palladium Key Market Players

• Norilsk Nickel Mining and Metallurgical Company
• Russian Platinum
• Johnson Matthey
• Heraeus Holding
• Shanxi Kaida Chemical Engineering Co., Ltd
• Anglo American Platinum Ltd

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