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General Market Commentary
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General Market Commentary
Palladium Soars to Record on Tight Supply, Bets on China Demand
Palladium surged to a record on bets that the Chinese auto industry will buoy global demand amid tight supplies of the metal used in vehicle pollution-control devices.
Spot palladium rose as much as 4.6 percent to an all-time high of $1,180.26 an ounce, capping a third straight gain. The commodity is up about 9 percent this year through Thursday, the best performance among major metals.
China’s new auto emissions standards are likely to boost demand for platinum-group metals, which include palladium, the World Platinum Investment Council said in a report Thursday. Citigroup Inc. has projected more production shortfalls, and said in a report this week that “extreme tightness” in the palladium market could help drive prices to as high as $1,300 in the second quarter of 2019.
“The combination of tightening emissions standards and continued auto-production growth means that China’s appetite for these metals has significant room to grow,” said Brendan Clifford, manager of investor development at the platinum council.
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