Palladium declines amid expectations of oversupply concerns in 2024

Economies.com
3 months ago

Palladium prices declined on Wednesday even as the dollar dipped against most major rivals, but the industrial metals faced pressures amid expectations of oversupply next year.

 

Oversupply

 

The Russian Nornickel company expects the palladium market to shit to a surplus of 300 thousand ounces in 2024, compared to a deficit of 200 thousand ounces in 2023 .

 

Nornickel wasn't targeted by direct western sanctions, and alone it produces 40% of the global palladium output, used to reduce exhaust fumes in automobiles. 

 

Nornickel noted that the automotive industry, which uses 80% of the global palladium supply, is slowly recovering following Covid 19 and the supply shocks of 2020 and 2021, and this demand on metals is expected to grow 1% this year.

 

Advertistment

The company noted that the increased consumption of palladium in 2022 and 2023 has been compensated with sales of accumulated inventories by car companies, with such inventory clearing efforts wrapping up in the second half of the year. 

 

The major company, which witnessed a 16% collapse in net profits during 2022, expects a global deficit in the palladium market by 300 thousand ounces in 2023. 

 

As for nickel, the company expects a surplus of 180 thousand tones in the nickel market during 2024.

 

Otherwise, the dollar index fell 0.4% to 103.7 as of 15:06 GMT, with a session-high at 104.3, and a low at 103.6.

 

On trading, palladium futures due in September fell 0.1% as of 15:07 GMT to $1,413.5 an ounce. 

Commodities News

Oil News

Commodities

Is that the real reason behind Saudi Arabia's crude production cuts?
9 hours ago
Saudi energy minister Abdulaziz bin Salman Al Saud said this week about the recent Saudi and ...
Palladium News

Commodities

Palladium declines as dollar muscles up amid global inflation concerns
11 hours ago
Palladium prices fell on Friday as the dollar gained ground against most major rivals and amid ...
Oil News

Commodities

Oil prices climb for second straight day
14 hours ago
Oil prices rose in European trade on Friday for the second session on track for ten-month highs ...

Commodities Technical Analysis

Brent oil Analysis

Commodities

Midday update for Brent oil 22-09-2023
16 hours ago
Brent oil price resumes its positive trading to approach our first waited target at 94.80, waiting ...
Oil Analysis

Commodities

Midday update for Crude oil 22-09-2023
16 hours ago
Crude oil price shows new positive trades to move above 91.00 barrier now, reinforcing the ...
Silver Analysis

Commodities

Midday update for Silver 22-09-2023
16 hours ago
Silver price managed to achieve our waited target at 23.70 and attempts to breach it, to support ...