Palladium futures fell to $950 per ounce, retreating sharply from the one-month high of $1,000 reached on January 23rd and continuing to lag behind other precious metals.
Palladium pulls back from one-month high
The decline reflects a bearish outlook for palladium’s industrial applications. The World Platinum Investment Council (WPIC) highlighted that weakening demand for internal combustion engines, which use palladium in catalytic converters and account for 90% of its consumption, has weighed on prices. This trend has been exacerbated by China’s slowing economy and the growing global shift toward electric vehicles.
Pressure from high supply forecasts
Additionally, market expectations of increased supply next year are adding downward pressure. Ample secondary supply from Russia and robust mining production in South Africa are anticipated to boost output, further driving palladium prices lower and contributing to its underperformance relative to platinum.
