CLRMF - Platinum and Palladium Pricing for the Foreseeable Future

Platinum group metals include platinum, palladium, rhodium, ruthenium, osmium, and iridium. Efforts to reduce carbon-dioxide emissions are boosting demand for platinum group metals, including palladium and platinum, for use in autocatalysts. In 2020, platinum and palladium futures prices rose 11.1% and 28.4% to finish the year at $1,079.50 and $2,455.50 per ounce, respectively. Year-to-date through March 26, 2021, platinum futures prices increased 10.3% to $1,191.10 per ounce, while palladium futures prices increased 9.1% to $2,680.00 per ounce. Notably, palladium is experiencing a multi-year supply deficit. Palladium is mined primarily in Russia and South Africa and mostly extracted as a by-product from mining other metals, including platinum and nickel. Platinum’s share of the autocatalyst market has fallen over the last fifteen years due to the adoption of palladium-rhodium catalysts in most cars that use gasoline and a move away from diesel automobiles that use platinum. However, given the price differential, some switching may occur, although car manufacturers seem more focused on advancing electric vehicles than making changes to a catalytic converter's cost. Most realize that such a switch is just likely to result in higher platinum prices, and the burdens of making the change may not be worth the cost savings.Read More >>