Consequently, Barclays expects a palladium supply deficit of 558,000 ounces this year.
Fueling the growing deficit, demand has picked up on increased automobile sales – palladium is a key component in catalytic converters used to diminish harmful emissions. [Palladium ETF to Enjoy Another Year of Strong Fundamentals]
Carmakers will reveal February sales Tuesday, and many industry observers project positive numbers, the New York Times reports. Analysts predict that year-over-year numbers should be significantly higher as the intense winter conditions last year kept many would-be buyers away from their local dealerships.
ETFS Physical Palladium Shares
For more information on the palladium market, visit our palladium category.