Palladium futures jumped to a 3-week high of around $1950 as improved prospects in demand and fears of tight supplies overshadowed the global growth concerns. Major central banks are hiking interest rates to tame the surging inflation, spurring fears of recession and demand destruction. Meanwhile, China, which accounts for 26% of global palladium consumption, relaxed the covid restrictions and resumed leisure activities, following a two-month lockdown, boosting hopes of a recovery in the metal demand from the auto industry. In contrast, concerns about tight supplies still persist as the West continues to impose trade restrictions on Russia. Britain announced sanctions on Russian oligarch Vladimir Potanin, who holds 36% stake in Nornickel, the world’s largest producer of palladium, 2 months after the London Platinum & Palladium Market and the Chicago Metal Exchange suspended key Russian firms from delivering palladium to these trading hubs.
Historically, Palladium reached an all time high of 3440.76 in March of 2022. Palladium - data, forecasts, historical chart - was last updated on June of 2022.
Palladium is expected to trade at 1801.65 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1595.07 in 12 months time.