Palladium declines on oversupply outlook in 2024

Palladium prices fell on Tuesday even as the dollar lost ground against most major rivals, but the industrial metal was pressured by the outlook of oversupply next year.

Market Oversupply

The Russian Nornickel company expects the palladium market to undergo an oversupply of 300 thousand ounces in 2024, compared to a deficit of 200 thousand ounces in 2023. 

Nornickel wasn't directly targeted by western sanctions, and alone it produces 40% of global palladium supplies, used to reduce exhaust fumes in cars.

Nornickel said that the automotive industry, which utilizes 80% of global palladium supplies, is slowly recovering after Covid 19 and the supply shocks of 2020 and 2021, with demand expected to grow on the metal by 1% this year.

The major corporations, which experienced a drop of 16% in its net profits this year, expects a global palladium deficit of 300 thousand ounces in 2023.