Palladium Price Trend and Forecast

Palladium Regional Price Overview

Get the latest insights on price movement and trend analysis of Palladium in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Palladium Price Trend for the First Half of 2024

Palladium prices exhibited significant volatility, characterized by sharp declines, brief recoveries, and subsequent pullbacks. The year began on a downward trend that had persisted since 2022, with palladium prices continuing to drop steeply through the first two months. This decline was driven by ongoing concerns in the market, particularly surrounding the increasing adoption of battery-powered electric vehicles (EVs), which do not require palladium, and the continued substitution of palladium with platinum by auto manufacturers due to cost considerations.
 

Palladium Price Chart

Please Login or Subscribe to Access the Palladium Price Chart Data
 

However, in March, palladium saw a temporary boost, aligning with positive movements in other precious metals such as gold, silver, and platinum. This upward momentum carried into early April when prices reached their highest level for the year. Despite this brief rally, palladium's performance remained fragile, with prices quickly retreating after hitting these highs, driven by persistent market headwinds and the overarching influence of the auto sector, which is the primary source of demand for palladium.

The market was further affected by an increase in recycled palladium supply as a growing number of vehicles containing high levels of platinum group metals (PGMs) reached the end of their operational lives, adding to the supply chain and exacerbating price pressures. The substitution of palladium with platinum, although slowing down as the two metals neared price parity, continued to influence the market dynamics. Meanwhile, the rise of EVs, particularly in China, continued to erode demand for palladium, as these vehicles do not require the metal. Despite steady vehicle sales, the shift towards EVs and smaller passenger vehicles, which are less reliant on palladium, dampened any potential demand recovery.

By the end of the second quarter, palladium prices had fluctuated widely but ultimately continued to trend downward, reflecting the ongoing challenges in the market, including increased supply through recycling, substitution trends, and the growing dominance of EVs.

Analyst Insight

According to Procurement Resource, the price of Palladium at low levels might present opportunities for certain investors. However, the long-term future of the metal remains uncertain, heavily dependent on the evolving dynamics of the automotive industry and broader economic conditions.
 

Palladium Price Trend for the Second Half of 2023

Palladium prices have plummeted to new lows in the last two quarters of 2023, as they were driven by the excessive supply fueled by the increasing adoption of electric vehicles and automakers favoring cheaper platinum for their autocatalysts. In the past few quarters, the prices were already dwindling on the lower end of the spectra due to the limited number of sales of the automotive sector, slowing down of the electric vehicle industries, especially in the Asian countries, and rerouting of supply routes due to the Russian Ukraine war.

However, in the last two quarters, the aforementioned industries gained momentum with the rise in their sales figures, but the manufacturers seemed reluctant to increase their consumption of palladium, hampering the trajectory of its price trend. Further, the push to reduce carbon emissions and the rise of alternative options for the downstream industries have raised the competition for palladium manufacturers and have dampened the movement of its prices. Additionally, a significant inventory overhang adds to supply concerns as mined palladium stocks remain ample. However, the downfall of the market was not steep but gradual, with slight rebounds in some of the months of the H2 of 2023, raising the hopes and expanding the budgets of the investors and manufacturers.

Analyst Insight

According to Procurement Resource, the price of Palladium is estimated to fluctuate in the limited range as the availability of cheaper alternatives and a slight rise in the production activities might result in oscillating momentum of the palladium price trend.
 

Palladium Price Trend for the First Half of 2023

Stay updated with the latest Palladium prices, historical data, and tailored regional analysis
 

Palladium is the platinum group metal in the periodic table. Because of its low melting point, it is extensively used in the automotive industry as a catalytic converter. Palladium is usually found in alliance with other metals in their ores, mostly nickel.

During the first half of the year 2023, palladium prices varied with the demands variation in the automobile industry. The European markets were still struggling with inflation and disturbed supply chain issues, especially in heavy-duty manufacturing like automobiles. General purchasing power had regressed for end consumers, so the automobile sales were at record lows.

Thus, the Palladium demand also depleted, and with this, an almost 21% decline in average monthly Palladium prices was observed in the European markets. The monthly spot prices stood at around 1744 USD/MT in January’23 and came down to about 1367 USD/MT in June’23. Overall, bearish market sentiments were observed.

Analyst Insight

According to Procurement Resource, the Palladium market prices are not projected to improve anytime soon since it can take longer for the manufacturing sector to incline again.

Procurement Resource provides latest prices of Palladium. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.