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Palladium Prices Climb as Car Sales Grow
Worldwide demand for palladium, a metal used to control vehicle emissions, is likely to drive up prices for the noble metal through next year, Bloomberg News reports.
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Worldwide demand for palladium, a metal used to control vehicle emissions, is likely to drive up prices for the noble metal through next year, Bloomberg News reports.
Carmakers use palladium, platinum or both so-called noble metals in catalytic converters depending upon the relative price of each.
Morgan Stanley predicts palladium prices will rise 10% to an average $881 per ounce this year and nearly 14% to $1,008 in 2016. Platinum currently sells for nearly $1,300 per ounce.
Catalytic converter maker Johnson Matthey plc predicts global demand for palladium is likely to exceed supply in 2015 for the fourth consecutive year. Last year's supply fell short of demand by 1.2 million ounces and is likely to be 907,000 ounces short this year, according to Deutsche Bank.
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