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Significance
Russia is responsible for 40% of newly mined supply and concerns about the physical availability of palladium sponge -- the powdered form of the metal used by industry -- are prompting stockpiling. Output from Russian miner Norilsk Nickel (Nornickel) fell by 8% in the first quarter while Amplats, South Africa’s largest producer, reported a 10% drop in palladium output.
Impacts
China’s tighter emissions standards, together with the Real Driving Emissions tests it has planned for 2023, may boost palladium demand.
The Global Palladium Fund, owned by Nornickel, is considering issuing asset-backed tokens; any war impact on this is unclear yet.
Russia could choose to retaliate against sanctions by curbing palladium exports.
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2022
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