Thoughts on Palladium (Pd)
Do you think there could be a price recovery within, say the next 2 years and if so, reasons for them. Also, which ASX mining companies are associated with mining this resource? Thank you and keep up the good work.
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Answer
Hi Michael,
For subscribers not familiar with Pd, its a transition metal often used in automotive catalyst converters, electronics, hydrogen storage, jewelry. Unfortunately our simple answer is no:
- As the electric vehicle (EV) transition accelerates, internal combustion engine (ICE) vehicle production declines, leading to lower demand for palladium.
- Also, manufacturers are increasingly substituting palladium with platinum, which is cheaper and has similar catalytic properties.
- The chart of stocks in the space show this trend, looking at Zimplats (ZIM) for example.
