Palladium Market Seen Swinging to Surplus This Year: CPM Group

Supply of metal used mostly to curb emissions in gasoline-fueled vehicles seen exceeding demand by
117,000 oz. after a deficit last year, according to CPM Group.
* “Such surplus metal may become absorbed by those investors with renewed interest in palladium,” the New York-based the researcher said in its CPM Platinum Group Metals Yearbook 2017, released Tuesday
** The market will “tighten significantly in the years ahead,”
CPM said
* Demand for palladium seen rising 0.9% to 9.43m oz., slowest pace since 2009
** Use by automakers to slow
* Mine production to rise 2% to 6.99m oz in 2017 from 6.85m a year earlier
* Scrap supply of palladium forecast to rise 3% to 2.57m oz

Platinum
* Platinum supply projected to exceed consumption by 191,000 ounces, a third straight year of surplus
* Mine output seen rising 0.1% to 6m oz.
* Scrap supply expected to fall 0.4% to 1.2m oz
* Total demand up 0.1% to 7.06m, as growth in use by carmakers, slows
* “Surpluses are projected to remain in the platinum market over the next few years,” CPM said
** “If investors are reluctant to buy large volumes of platinum, the metal’s price may remain weak for several years, before rising later in the long period of low prices takes its toll on
South African production and encourages increased use of this metal,” CPM said in the report

Source: Bloomberg Pro Terminal

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