Long-term negative view on Palladium

“Improving auto sector growth, higher loadings and substitution away from Palladium are likely to benefit Platinum.”

“Auto catalyst demand is likely to grow by 5% YoY. Constrained supply and robust demand could shift the market into deficit by 145 koz. A tighter market should encourage stronger investor activity.” 

“We expect ETF holdings to rise by 300 koz this year after two consecutive years of outflows. This should push Platinum prices to $1,250 towards the end of this year. However, we hold a long-term negative view on Palladium due to weakening auto catalyst demand.”