Palladium prices dropped 15% this month, hitting a two-year low. Sources cite weak automotive demand in the U.S. and China – the automotive market accounts for 70% of annual consumption, used in catalytic converters. Mining has increased under the influence of a strong U.S. dollar, while demand has shrunk – this year’s demand is only expected to be about 3 tons above production. 1
Investors are questioning whether demand for the metal, which is used to scrub emissions from gasoline engines, will be strong enough to sustain current prices.” 2
Recycled Palladium
In the low-end vehicle market, investors are discovering an excess of recycled palladium, recovered from donated and junked cars. For the past three years, recycled palladium has accounted for more than 30% of the supply. That trend is expected to continue as automotive scrap companies grow more efficient in a tough market. 3
About ARS
Advanced Remarketing Services offers innovative solutions to some of the remarketing industry’s toughest questions. We navigate the confusing landscape of wholesale, salvage and consumer markets to sell the vehicles in the best venue to the most appropriate buyer base.