Palladium prices are experiencing price pressure from excessive production and other fundamental weaknesses. Specifically, increased mining output from key supplier South Africa, slower car sales in emerging markets – three-quarters of palladium demand comes from catalytic converters – and the Volkswagen diesel emissions scandal have all weighed on PGMs.
“The risk of deliveries from Russian stockpiles has not gone away, [and in South Africa]producers need to show more production discipline, putting more ounces into the market at lower cost is not a recipe for success,” Merrill Lynch said in a note.
ETFS Physical Palladium Shares
For more information on the palladium market, visit our palladium category.
Max Chen contributed to this article.