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Thanks to China, Palladium Prices Hit Record High, Russian Producers Cash-in

According to a recent report from Bloomberg, palladium prices have hit record highs this month, and investors are signalling that the bull run has just begun. As a result, palladium futures jumped 5.2% last week, peaking at $1,168.30 an ounce.

On of the main countries driving this demand is the automotive industry which accounts for nearly 70% of palladium demand, and the demand for new cars remained fairly steady across the global markets despite downturns in other areas.

In terms of car markets, none is growing as rapidly as China which boasts an ever expanding car sales market. Chinese regulators are now mandating that smog-busting pollution-control car devices like catalytic converters become standard in new cars – which has triggered a demand of the rare metal.

Because global production is falling short of the robust demand, hedge funds are betting on an extended rally. “The market has a very positive fundamental outlook,” said Maxwell Gold, of Aberdeen Standard Investments, to Bloomberg.

Russia riding the bull market

Two of the world’s biggest palladium producers are Russia and South Africa, who produce three quarters of the global supply between them. Russian company Norilsk Nickel is the biggest producer of palladium in the world, accounting for nearly 40% of global production, with the total Russian output hitting 81 metric tons in 2017.

READ MORE GOLD NEWS AT: 21st Century Wire Gold Files

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