This year, platinum and palladium have surprised to the upside. As long as investment and industrial demand remain strong, various mine site disruptions and other obstacles will continue to limit supply expansion. As a result, supply-side changes will almost certainly benefit platinum and palladium, according to TD Securities.
“Despite the microchip-caused slowdowns in vehicles, easy money and trillions in government expenditure, expanding vaccine programs across the Western world, and China’s surprisingly robust economic performance, all of these should continue to be key upside triggers until 2022.”
“As the global economic recovery continues and global environmental standards tighten, recent mine site disruptions point to large deficits and another attempt at $3,000/oz for palladium next year, as well as fresh highs above $1,375/oz for platinum.”
“Should our industrial and investor demand estimates come true in 2022, the current mine site difficulties and Norilsk’s subsequent decrease of output guidance should keep supply-demand fundamentals tight, particularly for palladium,” says the report./n
