Palladium ETFs fortune may turn as markets find balance

Palladium futures are trading around the $1,910 an ounce mark (10:00 am, GMT +1), a rebound since hitting a rock bottom of $1597/oz on December 15th — amid expectations of demand recovery and easing of supply chain disruptions in the second half of 2022.

More than 80% of Palladium is used as catalytic converters in gasoline engines. The silvery-white metal helps remove hydrocarbons, carbon monoxide, and other harmful gases from exhaust emission. Demand and prices have been on the rise over the past decade on auto-demand and supply constraints. Last year, prices surged to a record-high of $3,017 before reaching a melting point. The rally turned into a landslide as a global chip shortage dampened the metal's consumption by carmakers who were forced to reduce auto production.

Nikos Kavalis, managing director at Metals Focus reported that Chinese imports would go up this year due to a rise in demand and stock replenishment after a year of extremely low imports. Morgan Stanley said in its December report that a recovery in vehicle production over the second half of 2022 would also boost the demand for Palladium.

With Palladium running hot over the past month (+13%), investors can gain simple and easy access to the precious metal through Palladium Exchange-Traded-Funds (ETFs).

Are you an ETF Investor? Your opinion matters: Answer the Trackinsight Global ETF Survey 2022.

Find and compare over 8,000 ETFs with our free tools:  

• ETF Screener  
• ESG Investing  
• Thematic Investing

Interested in seeing lists of top-performing ETFs? Check out our new Investing Guides:

• Investing in Gold ETFs
• Investing in Silver ETFs
• Investing in Commodity ETFs
• Investing in Oil ETFs
• Investing in ESG ETFs