Price

Palladium Pricing and Market Data

Palladium prices declined significantly through 2024-2025, falling from over $2,000/oz to around $950/oz, as the market shifted to surplus after years of deficit. The primary driver was the accelerating transition from internal combustion engine vehicles to EVs, which do not require palladium-containing catalytic converters. Russian supply - approximately 40% of global production from Nornickel - continued flowing to markets despite Western sanctions, as palladium was exempted from most trade restrictions due to its industrial importance. Substitution of palladium with platinum in gasoline autocatalysts also gained momentum. The structural outlook has turned bearish, with most analysts expecting palladium demand to peak by 2028-2030 as ICE vehicle production declines globally.

Pricing Mechanisms

Palladium is priced using benchmarks from LBMA/Johnson Matthey. Palladium pricing operates through a combination of exchange-based benchmarks, price reporting agency assessments, bilateral negotiation, and long-term offtake contracts. The specific mechanism depends on product form, grade, and the buyer-seller relationship.

Price History and Notable Market Events

The Palladium market has been shaped by the following key events:

Price Drivers

Key factors influencing Palladium prices include production levels in Russia (40% of global supply), demand from gasoline catalytic converters and electronics and capacitors, inventory levels, energy costs, and government policy actions such as export restrictions or strategic stockpiling.

Spot vs. Contract Pricing

The Palladium market features both spot transactions and longer-term contracts. Spot prices reflect current conditions and are more volatile, while multi-year offtake agreements provide supply security for both producers and consumers. Current spot pricing is in the range of 1,678-1,718 $/oz (53,900-55,200 $/kg).