Palladium Prices Expected to Remain Weak Despite Undersupply
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.
