Tuesday, October 7, 2025

Palladium Prices Soar to Record-High Amid Supply Shortage

The price of palladium has been sent soaring to historic highs, amid renewed optimism that the global economic rebound will fuel further demand among automakers.

Palladium, a vital metal used in catalytic converts to reduce CO2 emissions in gasoline-powered vehicles, surged to a new record-high to above $2,890 per ounce last week. The renewed rally in the metal comes at a time of heightened demand among automakers, especially amid tightening emission regulations in China and Europe.

To make matters worse, the palladium market has also simultaneously been suffering from a supply deficit over the past several years, following several disruptions at Russian mines. “It’s a confluence of factors that’s driving palladium,” BMO Capital Markets head of metals derivatives Tai Wong explained to Bloomberg. “Fundamentally, there’s going to be a material deficit this year and automakers need to restock,” he added.

Analysts are anticipating a bullish view for the metal, as automakers that were forced to cut back production amid a global semiconductor shortage will restock their supplies by the second half of the year. The “‘catch up’ when chip supply recovers and auto stocks are rebuilt will be significant,” said Citigroup Inc analyst Oliver Nugent in a note cited by Bloomberg. “This will be bullish for palladium physical balances especially,” the note continued.

Similarly, the metal, which is on an upward trajectory to reach a third straight month of gains, has also benefited from optimism of accelerating global economic growth, and a renewed outlook for low interest rates. Last week, Fed Chairman Jerome Powell reiterated the central bank’s stance on monetary policy, suggesting that the current economic factors fuelling the demand and price increase for palladium are here to stay for the foreseeable future.


Information for this briefing was found via Bloomberg. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

Nio Halts Vehicle Production For Five Days Due To Semiconductor Shortage

Nio Inc (NYSE: NIO) this morning was the latest automotive firm to announce production suspensions...

Friday, March 26, 2021, 08:12:22 AM

Semiconductor Manufacturing Further Threatened By Supply Chain Issues As PFAS Enters Short Supply

The struggle to produce sufficient semiconductors for a world that has seemingly insatiable demand from...

Saturday, April 9, 2022, 09:00:00 AM

Gold Crosses $2,000 Per Ounce, Commodities Soar As Russia Continues To Cause Market Uncertainty

Futures have gone on a wild ride this evening, with a basket of commodities hitting...

Sunday, March 6, 2022, 09:41:33 PM

Intel and Tower Semiconductor Abandon $5.4 Billion Merger Amid Regulatory Challenges

In a significant turn of events, Intel Corporation (NASDAQ: INTC) and Israeli chipmaker Tower Semiconductor...

Thursday, August 17, 2023, 06:14:00 AM

Global PC Demand Soars by Most Since Dot Com Boom

The global shortage of semiconductor chips will likely not be alleviated anytime soon, especially since...

Sunday, April 18, 2021, 03:41:00 PM