Palladium prices are anticipated to continue being somewhat weak, due to a shift towards using platinum in automobile production and destocking activities in China. UBS data suggests that despite being in undersupply, palladium futures are currently trading at $1,252 per troy ounce in New York, with forecasts indicating a range of around $1,200 per ounce from December 2023 to at least September 2024. The bank emphasizes a cautious outlook for palladium, citing lower Chinese imports due to expected destocking as a potential contributing factor, along with the ongoing substitution of palladium with platinum in autocatalysts. According to Giovanni Staunovo, a strategist at UBS, investors have likely been capitalizing on price rebounds to divest, making palladium one of the year’s poorest performing metals so far.
Palladium Prices Expected to Remain Weak Despite Undersupply
