Palladium drops 3% as automotive industry changes strategy

Palladium futures fell on Monday, amid weak demand levels due to a change in the automotive industry's strategies.

Multiple car manufacturers suspended production activities recently, due to weak demand for cars amid the coronavirus pandemic.

US President Donald Trump ordered General Motors to start manufacturing respirators and medical supplies.

Consequently, this lowered demand for palladium, which is heavily used in the manufacturing of car components that reduce exhaust emissions.

The world's largest Palladium producer, South Africa, announced a lockdown on citizens movements, business and corporate activities in all industries, to prevent the coronavirus from spreading.

This pushed palladium prices above the $2,000 threshold during the past week, due to concerns over a drop in global supply.

Palladium June futures lost 3% to trade at $2,132.2 an ounce as of 13:43 GMT, after hitting today's high at $2,224 and a low of $2,105.3.