Palladium and Platinum in the Ascendency

Platinum and palladium markets experienced a downward trend in 2024, despite a noticeable rebound since mid-December. Platinum and Palladium funds rose by 1.50% and 5.32% respectively for the week ended Dec. 22. Many fundamental data points could justify a more substantial rebound in these markets. Notably, Norilsk Nickel, the world's leading producer of palladium, indicated in its third-quarter report that the palladium market will conclude 2023 with a deficit, even though this metal has fallen by 29% since the beginning of the year and almost 60% from its all-time high last year. The Russian company does not foresee the market emerging from this deficit situation next year. Current prices suggest that nearly half of South African platinum and palladium production could be undertaken by companies operating at a loss. Without a drastic cost reduction or a significant depreciation of the local currency, these companies could be forced to close part of their activities.

These circumstances highlight not only current pressures on platinum and palladium markets but also underscore potential challenges for producers moving forward into next year.

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Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.