Palladium and platinum, two “cousin” metals and both part of the platinum-group metals (PGMs) on the periodic table, are used in catalytic converters and other industrial applications. Palladium is trading around $2,670 an ounce, with platinum on $1,177 an ounce.
Analysts at Citi think palladium could hit $3,000 by the third quarter of this year, says Jack Denton in Barron’s. A surge in catalytic-converter demand as many countries tighten emissions standards should lead to a sizeable global deficit in the metal this year and next. Russian producer Nornickel says problems at two of its Siberian mines will mean 15% to 20% lower production of PGMs than planned this year. Russia is the world’s largest producer of palladium and the second in platinum after South Africa.
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