Supply shortage pushes palladium to record levels
Catalytic converter component hits new highs
Precious metal palladium has maintained its significant run this week, closing at its highest point ever on Tuesday.
The element, whichspeeds up chemical reactions and is used in a variety of industries, from electronics, jewellery, medicine and chemical development, reached at $1736.00 (£1362). per troy ounce on Tuesday night. It continues to trade above $1700.00, a level it has never previously breached.
Palladium’s largest industrial application is in catalytic converters for automobiles. Its role in reducing harmful emissions from vehicle exhausts provides palladium with strong fundamentals for the long term future.
Its short term price momentum is propelled not only by the increasing pressure on governments and manufacturers to reduce global emissions but also by a relative shortage in supply. The metal is 30 times rarer than gold and comes from the USA, Canada, South Africa and Russia. A recent note from Morgan Stanley stated that new rules for cars in China will increase palladium demand, as Reuters noted this month. The emission controls will mean that Chinese cars will need to include 30pc more palladium
Palladium has rallied over $300 from an almost two-month low in early August.