Palladium futures traded above $2,000 per troy ounce, recovering from a 15-month low of $1,857 hit on September 29th after palladium producer Nornickel cut its deficit estimate for the global market due to flooding at two of its mines. Nornickel, supplier of around 44% of the global palladium needs, currently expects a deficit of 0.2-million-0.3 million ounces in 2021 (from a previously forecast of 0.9-million ounces deficit) and 0.3-million ounces in 2022 (from a previously forecast of 0.7-million ounces deficit). The palladium market has been hit by lower demand from the auto industry amid the ongoing global semiconductor chip shortage. Palladium also struggled with substitution effects from platinum, viewed as a cheaper perfect substitute used in the manufacturing of catalytic converters.
Historically, Palladium reached an all time high of 3017.18 in May of 2021. Palladium - data, forecasts, historical chart - was last updated on October of 2021.
Palladium is expected to trade at 2125.90 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2308.13 in 12 months time.