Investment case
While PALL has come under intense downward pressure since the start of November, we believe that the recent weakness offers a buying opportunity, because the fundamental picture of the palladium market remains tight despite the weakening of auto trends. The tightness of the refined palladium market is reflected in the backwardated structure of the forward curve of Nymex palladium.
Despite the notable contraction in global automobile production (principally driven by China), the refined palladium market is still set to post another deficit this year, which should therefore drive palladium prices higher until the