Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Alternatives Channel
  2. Palladium ETF Strengthens on Chances of Global Deficit
Alternatives Channel
Share

Palladium ETF Strengthens on Chances of Global Deficit

Max ChenMay 16, 2022
2022-05-16

A palladium exchange traded fund shined on Monday as the precious metal is expected to slip back to a deficit this year.

The abrdn Physical Palladium Shares ETF (PALL A) increased 4.9% on Monday while the palladium spot price was up 4.9% to $2,041.6 per ounce.

Lifting palladium prices, Autocatalyst maker Johnson Matthey warned that the palladium markets are likely to move back into a deficit. Palladium is used in autocatalysts to reduce harmful emissions from vehicle engines.

Tightening supplies of palladium have helped drive up prices in the precious metal over the years.

Johnson Matthey argued that while palladium demand fell alongside automobile production in response to a shortage of semiconductors, supply remains under pressure, especially with the ongoing Russia-Ukraine war and Western sanctions, Reuters reports.

Automakers “can’t react that quickly on the amount of metal they use this year or even next year, but if the situation (in Ukraine) continues, they may have some flexibility to substitute a little bit quicker than they had previously planned,” Johnson Matthey researcher Rupen Raithatha said.

Russia accounts for about 25% to 30% of the world’s supply of palladium and around 8% to 10% of global platinum supplies.

There is no sign that Western sanctions on Moscow have impeded Russian exports in response to the invasion of Ukraine. However, with the war dragging on, more companies could begin to boycott Russian metal, and governments could impose more significant restrictions.

“The substitution effort has gone up hugely,” Trevor Raymond, the World Platinum Investment Council’s head of research, told Reuters. “The amount of savings an automaker can make are massive. What’s been added on top of that is concerns about availability (of palladium).”

Consultant Metals Focus projected that the roughly 10 million ounces per year palladium market could go back from a first surplus in 10 years for 2021 to a deficit of 521,000 ounces in 2022. The consulting agency also predicted palladium prices would average $2,290 an ounce this year.

Palladium was trading at a record high of $3,440.76 per ounce earlier this year.

“For more news, information, and strategy, visit the Alternatives Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X