Palladium

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: PALLDIUM DEMAND OUTLOOK IMPROVES

• 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.
• BREAKING (MAY 20): CHINA REPORTED THE LARGEST PLATINUM IMPORTS IN ONE YEAR IN APRIL. China remains to be the largest consumer of Platinum and Palladium in the world. Fresh forecasts by the Metals Group expect the global palladium market to be at a supply deficit of 254 thousand ounces this year, which would be its second year of a market deficit in a raw.

EVENTS (USA):

• EVENT (THURSDAY, MAY 22, AT 14:45 GMT+1): US MANUFACTURING PURCHASING MANAGERS INDEX (PMI) (MAY): A weaker-than-expected PMI result could signal a slowdown in industrial activity, prompting the Federal Reserve to accelerate rate-cut plans. Such a shift in policy would likely support palladium prices by easing financial conditions and improving the outlook for industrial metals. (PREVIOUS: 50.6)
• EVENT (THURSDAY, MAY 29, AT 13:30 GMT+1): US GROSS DOMESTIC PRODUCT (GDP) (Q1) second reading: A weaker-than-expected GDP result could increase pressure on the Federal Reserve to accelerate interest rate cuts in response to slowing economic growth. For palladium, this could be supportive, as lower rates typically reduce the dollar’s strength and improve industrial demand outlook, particularly in sectors like automotive manufacturing, where palladium plays a key role in emissions control technology. (FIRST READING (Q1): -0.3%)

EVENTS (CHINA):

• EVENT (SATURDAY, MAY 31 AT 02:30 GMT+1): CHINA MANUFACTURING PURCHASING MANAGERS INDEX (PMI) (MAY): China will release key data showing how its manufacturing sector performed during May. A stronger-than-expected result could indicate rising factory activity and increased demand for raw materials, including palladium. Given palladium’s critical role in automotive production and industrial processes, any signs of recovery in China’s manufacturing sector could provide further support for its price. (PREVIOUS: 49.0).

PRICE ACTION:

• PALLADIUM HIT AN ALL-TIME HIGH OF $3,409 (MARCH 2022). Palladium trades around $1012, and if the price of Palladium moves to the level of $3,409, this would be around 237% of a price change. However, the price could decline.

PALLADIUM, May 21, 2025
Current Price: 1012

Example of calculation base on weekly trend direction for 1.00 Lot¹

PALLADIUM

1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:50 (GMT+1) 21/5/2025

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.