Palladium weekly special report based on 1.00 Lot Calculation:
PALLADIUM USE AND MARKET SHARE:
- Palladium is mostly used in catalytic converters by the car industry to reduce harmful gas emissions, while tightening regulations are forcing automakers to put more Palladium into each vehicle, which in turn could keep the demand outlook positive. Palladium has also been used in fuel cells to generate power.
- MARKET SHARE (PRODUCERS): Russia is the largest producer, holding 43% of the market, while South Africa is the second largest with 33.00% of the market. Canada is third on the list with 9.5% of the global production.
- MARKET SHARE (CONSUMERS): China is the largest Palladium consumer with 31%, while Europe and North America (USA) hold 20% each. Japan stands at 11%.
US-CHINA TRADE AGREEMENT: POSITIVE SIGNAL FOR INDUSTRIAL METALS
- BREAKING (MAY 12): US AND CHINA REACH TARIFF REDUCTION DEAL. The U.S. and China agreed to slash tariffs in a surprise move to ease trade tensions. U.S. tariffs on Chinese goods will drop from 145% to 30%, while Chinese tariffs on U.S. imports will fall from 125% to 10%. The deal includes a 90-day suspension on further tariffs.
- PALLADIUM DEMAND OUTLOOK IMPROVES. The agreement supports global auto production by reducing cost pressures and improving supply chain flow. As palladium is essential in catalytic converters, demand could rise if vehicle production and sales rebound, especially in China.
TRADE WAR: TRUMP’S TARIFFS ON THE AUTOMOTIVE INDUSTRY
- BREAKING (APRIL 30): US PRESIDENT TRUMP SOFTENED AUTO TARIFFS. President Donald Trump signed executive orders to relax some of his 25% tariffs on automobiles and auto parts. This will allow carmakers to offset tariffs for imported auto parts used in U.S.-assembled vehicles. The amount they can offset is equal to 3.75% of the total value of the Manufacturer’s Suggested Retail Price of vehicles built through April 2026 and 2.5% of their total U.S. production through April 30, 2027. Easing of auto tariffs could boost U.S. vehicle production and sales, supporting industrial demand for palladium, which is widely used in catalytic converters.
EVENTS (CHINA):
- MONDAY, MAY 19 AT 03:00 GMT+1: CHINA INDUSTRIAL PRODUCTION (YEAR-ON-YEAR) (APRIL): China will release how its factory output is performing compared to the same month last year. Stronger-than-expected data could signal rising demand for raw materials, including palladium, which is widely used in automotive and industrial applications. A continued recovery in China’s industrial sector would be supportive for global metal prices, especially if combined with improving trade conditions. (PREVIOUS (MARCH): +7.7%).
EVENTS (USA):
- EVENT (TUESDAY, MAY 13 AT 13:30 GMT+1): US INFLATION (CPI) (APRIL). U.S. inflation came in at 2.4% in March, down from 2.8% in February. Another lower rate would increase the likelihood that the Federal Reserve could restart cutting interest rates in the coming months. A potential shift in monetary policy could weaken the US dollar and support demand for precious metals like palladium.
- EVENT (THURSDAY, MAY 15 AT 13:40 GMT+1): US FED CHAIR JEROME POWELL SPEAKS. Investors will closely watch Fed Chair Jerome Powell’s comments for any signals on the future path of interest rates. If Powell adopts a more dovish tone, highlighting easing inflation and potential economic slowdown, it could boost expectations for rate cuts later this year. This is expected to weaken the US dollar and support demand for precious metals, including palladium.
PRICE ACTION:
- PALLADIUM HIT AN ALL-TIME HIGH OF $3,409 (MARCH 2022). Palladium trades around $939, and if the price of Palladium moves to the level of $3,409, this would be around 263% of a price change. However, the price could decline.
PALLADIUM, May 13, 2025
Current Price: 939
|
PALLADIUM |
Weekly |
|
Trend direction |
|
|
1,250 |
|
|
1,100 |
|
|
1,000 |
|
|
890 |
|
|
880 |
|
|
870 |
Example of calculation base on weekly trend direction for 1.00 Lot1
PALLADIUM
|
Pivot Points |
||||||
|
Profit or loss in $ |
31,100 |
16,100 |
6,100 |
-4,900 |
-5,900 |
-6,900 |
|
Profit or loss in €2 |
27,987 |
14,489 |
5,489 |
-4,410 |
-5,309 |
-6,209 |
|
Profit or loss in £2 |
23,532 |
12,182 |
4,616 |
-3,708 |
-4,464 |
-5,221 |
|
Profit or loss in C$2 |
43,497 |
22,517 |
8,531 |
-6,853 |
-8,252 |
-9,650 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:45 (GMT+1) 13/5/2025
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
Trailing stop technique could protect the profit.