Apparently not platinum is taking over...
What are the recent market trends and factors contributing to the decline in palladium prices?
The palladium price has fallen significantly due to a combination of factors. Here are some key reasons:
Surplus supply: The market is expected to be in a surplus in 2024, which has put downward pressure on prices. The rapid spread of electric vehicles and automakers choosing cheaper platinum for their autocatalysts has reduced demand for palladium.
High stockpiles: Stockpiles of palladium remain high, which has increased the supply of the metal and put downward pressure on prices.
Weak demand: Demand for palladium has been weak due to the shift towards electric vehicles and the ongoing pandemic, which has reduced demand from the automotive sector.
Russia-Ukraine conflict: The ongoing conflict between Russia and Ukraine has disrupted supply chains and reduced demand for palladium, leading to a decline in prices.
Platinum prices: The price of platinum, a sister metal to palladium, has been relatively stable, which has made it more attractive for automakers to use platinum instead of palladium in their autocatalysts.
Global recession: The global economic outlook is uncertain, and a recession could further reduce demand for palladium and other precious metals.
Here are some specific events that have contributed to the decline in palladium prices:
In 2023, palladium prices fell to five-year lows below $1,000 an ounce due to expectations of surpluses and weak demand.
In February 2024, spot palladium prices fell below those of sister metal platinum for the first time since April 2018, due to growing demand concerns and bets on stable supply.
In November 2023, palladium prices tumbled to five-year lows as the rapid spread of electric vehicles and automakers choosing cheaper platinum for their autocatalysts reduced demand for palladium.
Overall, the combination of surplus supply, high stockpiles, weak demand, and global economic uncertainty has led to a significant decline in palladium prices.