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also produced as a by-product of nickel mining. The largest consumer market
for palladium is the automotive industry at present, with palladium frequently
replacing platinum as the material of choice for a number of components.

Fundamental Facts
• Palladium is a rare metal, 30 times rarer than gold. Supplies are also

finite, and as it grows in popularity as a raw material, it is likely that
demand will start to significantly outstrip supply, which will drive
palladium prices and the price of palladium futures up.
• Any resurgence in the jewelry market will likely see palladium rise in
price.
• The same can be said for any increase in the automotive industry, where
palladium is frequently used in catalytic converters.
• Any growth in the economy that leads to expansion of the automotive
industry will have a marked effect on palladium trading.

Top Producers of Palladium (‘000 Kilograms)

Country 2015 2016
Russia
South Africa 81 82
Canada
USA 83 73
Zimbabwe
Other Countries 21 23
World Total (rounded)
12.5 13.2

10 10

8.3 6.6

216 208

Source: US Geological Survey

Palladium Supply & Demand

(‘000 Ounce)

Supply 2014 2015 2016
South Africa 2,125
Russia 2,589 2,684 2,571
Others 1,389
Total Supply 6,103 2,434 2,487

Demand 2014 1,326 1,427
Autocatalyst 7,500
Jewelry 272 6,444 6,485
Industrial 2,001
Investment 943 2015 2016
Total Demand 10,716
Recycling -2,752 7,655 7,840
Total Net Demand 7,964
225 215

2,039 1,987

-659 -357

9,260 9,685

-2,460 -2,459

6,800 7,136

Source: Johnson Matthey

Palladium

600 January
February
L 500
March
O 400 April
May
300 June
July
T 200 August
September
S 100 October
November
0 December

Months (January 2017 - December 2017)

MEX NEPAL YEAR BOOK 2017 | 60