Natasha Kaneva is joined by Greg Shearer to discuss the outlook for platinum and palladium prices after a volatile start to the year.  Prices of both metals surged into early March on intensifying concerns around Russian supply. Yet this risk premium has sharply eroded in the last two months as fundamental concerns quickly shifted from lost supply to disintegrating demand as disruptions have once again snarled automotive supply chains.  While trimming near-term forecasts to account for the diminished S&D fundamentals, a stabilizing rebound in light vehicle production as well as a recovery in industrial activity in China should support prices for both metals in the coming quarters. Though, over the medium-term, PGM prices look set to diverge with platinum prices likely to see further gains on tightening fundamentals while palladium faces a number of stiff structural headwinds.

 

This podcast was recorded on 27 May 2022.

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