Johnson Matthey estimates palladium prices will average $650 per ounce over the next six months, with a range of $550 to $750 per ounce, Platts reports. Palladium currently sits at around $634 per ounce.

“Supplies will contract mainly because of lower sales of Russian state stocks, forecast to drop by over 500,000 oz compared with last year, to 250,000 oz, while recycling will be constrained by subdued PGM prices,” Johnson Matthey said in a report. “Gross palladium demand is predicted to rise to 9.73 million oz, driven by a return to positive net physical investment and higher autocatalyst purchasing.”

The ETFS Palladium ETF (NYSEArca: PALL) was up 4.5% over the past three months but down 7.3% year-to-date.

For more information on palladium, visit our palladium category.

Max Chen contributed to this article.