PRESS ROOM
Conflict has added two sources of uncertainty for palladium
Friday 18th March '22
Around 40% of world palladium production comes from Russia putting the metal among the ones most impacted by the conflict. Before the war started, however, we took a constructive view on palladium demand on account of an improved outlook for the automobile industry this year. The conflict has, however, created a lot of uncertainty for palladium on two fronts. First, prices are expected to fluctuate as the situation unfolds. And second, the case for an improved fundamental outlook for automobiles rested on the provision of more semiconductors to automakers this year. Ukraine and Russia, however, are both key suppliers of neon – used in making semiconductors. A question mark on the outlook for the semiconductor industry could, yet again, create headwinds for palladium.