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2021: Russian export share - 45% of the global market
2019
Impala Platinum from South Africa buys Canadian North American Palladium for $1 billion
In October 2019, the South African company Impala Platinum Holdings announced that it To Canada would buy North American Palladium Ltd, which is located in the company, for 1 billion Canadian. dollars
This will be the first purchase of a mining enterprise by an African company outside the continent.
Doubling of palladium prices for the year
Palladium prices have doubled since August 2018. The reason is the increase in consumption in the automotive industry, which is increasingly producing hybrid cars and gasoline-powered cars. The tightening of environmental requirements for cars in China and the Eurozone, the growth of the largest automotive markets by 1-3% per year provide an increase in demand for metal.
Shortages in the palladium market may increase sharply
As reported, in 2019, the deficit in the palladium market may increase sharply, as tougher legislative measures on harmful emissions are predicted, which will stimulate double-digit growth in palladium demand from European and Chinese automakers. Despite the fact that the extraction of autocatalysts from scrap should increase again, the growth rate of secondary supplies is likely to be lower than in 2018, while primary supplies (production) will remain at the same level[1]
2018: World palladium supply is tentatively estimated at 6.88 million ounces
On February 15, 2019, it became known that Russia in 2018, according to preliminary data, increased the supply of palladium to the world market by 18% compared to a year earlier - to 2.84 million ounces (88.33 tons).
The total supply of palladium in the world at the end of 2018 is tentatively estimated at 6.88 million ounces, which is 8.2% more than in 2017. At the same time, demand decreased by 3.3% - to 6.9 million ounces. Recycling in 2018 rose to 3.2 million ounces from 2.9 million ounces a year earlier.
In 2018, the deficit in the palladium market narrowed as supplies increased due to sales of producer stocks and processing of scrap and waste containing palladium, and demand growth was restrained by the ongoing massive liquidation of ETF assets (English Exchange Traded Fund, Exchange Investment Fund). So, in 2018, investment demand decreased by 555 thousand ounces, in 2017 - by 386 thousand ounces, and in 2016 - by 646 thousand ounces. At the end of 2018, reserves in the ETF were estimated at 730 thousand ounces.
However, there remains a major long-term disparity between primary metal production and industrial consumption. This fundamental deficit continued to grow in 2018, while the demand for autocatalysts reached a record level, and the chemical industry showed high activity.
The market approached the balance sheet in 2018. However, price movements and the availability of physical metal indicate that the market is in structural deficit.
The main reason is a reduction in ETF reserves at the end of 2018, funds no longer have enough metal left to bridge the gap between industrial demand and supply.
According to the results of 2018, the Russian palladium producer, MMC Norilsk Nickel, reduced palladium production by 1.83% compared to a year earlier - to 2.729 million ounces (84.9 tons)[2]
Notes
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