PRESS ROOM
Palladium's supply deficit could widen in 2021
Friday 23rd April '21
In contrast to other precious metals, palladium has been on a winning streak since the start of March. Palladium has been in a supply deficit for at least six years running. Demand for the metal in gasoline autocatalysts outstrips its supply. In 2021, MMC Norilsk Nickel has experienced an accident at a concentrator and flooding at another mine. This company accounts for 41% of global production. They expect a 3 to 4 months period to get supply back to normal. Overall, their guidance is for 20% lower platinum group metal (PGM) production this year. That should result in roughly 570k oz of palladium taken off the market in 2021 (which is equivalent to 6% of the average palladium demand over 2015 to 2020). For a market that was already tight this will deepen the supply deficit. A combination of tight supply along with a rebound in auto sales this year bodes well for palladium.