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Johnson Matthey Pgm Prices Soar as Demand Recovers Amid Supply Disruption

Nachrichtenagentur: news aktuell
17.05.2021, 15:15  |  161   |   |   

London (ots/PRNewswire) - Pgm demand recovered strongly from Covid disruption,
with rising auto production, stricter emissions legislation, and resilient
industrial demand.

Mining and processing outages hit supplies during 2020 and early 2021, driving
pgm prices higher.

Palladium and rhodium prices surged to new all-time records in early 2021, with
both markets in significant structural deficit.

- Palladium and rhodium are forecast to remain in deficit in 2021, as global
auto production recovers, and clean air legislation becomes more stringent.
- Platinum could move back into surplus, despite higher autocatalyst demand, as
higher prices curb investment and jewellery consumption.
- Primary pgm supplies have been affected by processing plant outages in South
Africa and mine flooding in Russia but should improve as the year progresses.
- Consumers are now responding to record prices, with car companies accelerating
thrifting and substitution programmes, and glass companies reducing rhodium
use.

The platinum market is forecast to move back into surplus in 2021, despite a 27%
gain in autocatalyst demand, according to estimates published in Johnson
Matthey's latest Pgm Market Report. South African platinum supplies will rebound
by nearly 40%, as Covid disruption subsides, and backlogs from processing
outages in 2020 are treated. Higher prices are hitting investment, with Japanese
bar purchasing turning negative in early 2021, and ETF buying subdued. Chinese
retailers stocked up on platinum jewellery in the second half of 2020, but the
recovery has stalled due to a narrowing discount to gold.

The palladium and rhodium markets will remain in deficit in 2021. Both metals
recorded all-time high prices in early 2021, with palladium climbing above
$3,000 and rhodium repeatedly surging to $30,000. In response, automakers have
accelerated thrifting and substitution programmes, seeking to reduce the use of
these metals in gasoline autocatalysts. Despite this, both palladium and rhodium
will see double-digit growth in automotive demand in 2021, as vehicle output
rebounds, and major markets phase in tighter emissions regulations and more
stringent test procedures.

Rupen Raithatha, Market Research Director at Johnson Matthey, commented: "The
overall pgm content of catalyst systems is still rising, in line with tightening
emissions legislation in many regions, and the implementation of Real Driving
Emissions testing in Europe. This is supporting palladium and rhodium demand,
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Johnson Matthey Pgm Prices Soar as Demand Recovers Amid Supply Disruption Pgm demand recovered strongly from Covid disruption, with rising auto production, stricter emissions legislation, and resilient industrial demand. Mining and processing outages hit supplies during 2020 and early 2021, driving pgm prices higher. …

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