Chart of the week: palladium outshines platinum

Dwindling enthusiasm for diesel engines has led to a fall in demand for platinum, used in catalytic converters, and a rise in demand for palladium, used petrol engines.

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Palladium eclipsed its sister metal platinum for the first time in 16 years last week. The crossover occurred at around $925 an ounce. This is due largely to trends in the car industry, the key source of demand for both metals. Platinum is used for catalytic converters in diesel engines, while palladium is the key element in converters for petrol engines. Record demand for the latter and dwindling enthusiasm for diesel amid growing worries over their environmental impact explains the latest price moves. The platinum market could see its first surplus in seven years in 2017; palladium is in deficit.

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