Topic: Palladium edges to new record as Russia adds to supply squeeze - page 2. (Read 296 times)

The palladium reached a record value of $ 1,600. The price has risen after the ban on exports from Russia. The palladium has reached the highest price ever, exceeding the $ 1,600 threshold per ounce for the first time after news that Russia is planning to ban the export of this precious metal, which has raised concerns over the market already limited by supply. On top of this Russia and South Africa together produce about three quarters of the world's reserves.

The Russian Ministry of Trade and Industry announced last week that the proposed ban on the export of precious metal parts will last from May 1 to October 31. Russia is the main producer of palladium, which is mainly used in catalysts.

Prices have almost doubled from the lowest levels and have already risen by about 27 percent since the beginning of this year. It is expected that the automotive industry, the leading consumer of this metal, will have the biggest impact on further price increases. The demand for this metal has risen sharply after a diesel engine scandal that shook the world in 2015, since from that moment the sale of cars with petrol engines has risen drastically.



Palladium is traditionally used in catalytic converters whose purpose is to control the emission of exhaust gases by transforming toxic gases and pollutants into less toxic and polluting. Nearly 70 percent of the demand for palladium comes from world carmakers.