NEW YORK (Scrap Register): Stricter emissions limits may keep underpinning palladium even if car sales slow, said commodities brokerage SP Angel.
The metal topped $1,400 an ounce for the first time ever on Thursday, pulled back, but is back above that level again Friday.
“Palladium surged to fresh highs, breaking the $1,400 an ounce level, to extend its rally even amid signals global vehicle sales are slowing,” SP Angel added.
The fundamental emissions-controlling metal used in the auto industry for catalytic converters has surged more than 60% since the middle of August, driven by an acute shortage of immediate supply.
Investors are shrugging off signs of automotive weakness in key markets, with annual car sales in Europe falling for the first time since 2013.
Chinese sales also declined last year, while sales in the U.S. barely rose, SP Angel noted. However, ever stringent emissions controls are expected to sustain demand as governments seek to match CO2 targets.