“Platinum auto demand will rise to 3.5 million ounces, while other industrial usage is expected to increase almost 10 percent,” according to Bloomberg. “Global platinum jewelry demand is seen at 2.93 million ounces, aided by more purchases in China. Carmarkers will increase palladium demand to 7.76 million ounces.”
The auto industry is a major source of industrial demand for palladium. Specifically, palladium is used in catalytic converters to reduce toxic gas emissions from gasoline-fueled cars – the auto sector consumes about 67% of the world supply of platinum for catalytic converters, according to North American Palladium.
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