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 80% of the world supply of palladium for the manufacture of catalytic converters in cars, according to North American Palladium.
Palladium is used in gasoline-powered engines, whereas platinum is used to diminish emissions in diesel-powered engines.
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“The Volkswagen diesel vehicle emissions scandal revealed in September 2015 fortified the negative sentiment toward diesel passenger vehicles in Europe,” CPM added.
For more information on the palladium market, visit our palladium category.
ETFS Physical Palladium Shares