Palladium supply deficit could hit 1M oz., drive record prices, consultant says
May 18, 2021 6:55 PM ETSibanye Stillwater Limited (SBSW)By: Carl Surran, SA News Editor
The 10M oz./year palladium market may be undersupplied by 1M oz. in 2021 as demand continues to firm, lifting the average price by 37% Y/Y to a record high $3K/oz., Metals Focus says in a new report.
Above-ground palladium stocks fell by 169K oz. last year to 12.29M oz., and stockpiles of the metal likely will decline further to 11.22M oz., and "acute tightness in palladium seems inevitable" as the global automotive industry recovers further next year, Metals Focus says.
Relevant tickers include SBSW, OTCPK:NILSY, OTCQX:AAUKF, OTCQX:NGLOY
ETFs: PALL, SPPP, PPLT, PLTM, PGM, PTM
Also, the 8M oz./year platinum market may be undersupplied by 68K oz. if all investment demand is included, with average prices up 36% Y/Y to $1,200/oz., the highest since 2014, according to the report.
Palladium (XPDUSD:CUR) was trading at ~$2,930/oz. and platinum (XPTUSD:CUR) at ~$1,220/oz. today.
Earlier this year, Sibanye CEO Neal Froneman predicted the price of platinum could hit $2K/oz. "and probably even higher" as automakers switch in the metal for more expensive palladium in autocatalysts. |
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