Automakers are stepping up efforts to reduce palladium use and increase platinum levels amid concerns over supplies of palladium from Russia, the World Platinum Investment Council (WPIC) said Monday.
Russia now accounts for about 25-30% of the world’s stock of palladium and about 8-10% of platinum.
There are no signs that Russia will restrict palladium exports, but as the operation in Ukraine continues, more companies may boycott the Russian metal and governments may impose restrictions, Reuters writes.
“Efforts to replace palladium have skyrocketed,” said Trevor Raymond, head of research at WPIC. “At the same time, the savings for the automaker from such a transition are enormous. There were also concerns about (palladium) availability.”
About $950 an ounce (28.3 grams) platinum costs about half as much as palladium. Automakers use about 2.5-3 million ounces of platinum and about 8.5 million ounces of palladium annually.
Keep in mind that palladium is most in demand in the automotive industry, where it is used in catalytic converters along with platinum. Palladium finds more application in petrol engines, platinum in diesel engines.
A picture: Depositphotos
Source: Z R