With palladium being a critical material for catalytic converters and industrial electronics, it’s no surprise that geopolitical shifts have started to impact its pricing in a big way.
Here are a few factors I’ve noticed:
- Russia’s dominance in palladium supply: Russia accounts for around 40% of global palladium production. Sanctions, export restrictions, and political instability have made the market jittery.
- South Africa’s power crisis: Another key supplier, South Africa is facing chronic electricity shortages, which affects mining operations and adds supply-side pressure.
- EV adoption and policy shifts: Countries shifting to electric vehicles are altering demand for combustion engine catalysts — which directly impacts palladium consumption.
- Currency fluctuations & inflation: Dollar strength and inflation in emerging markets are also shaping global purchasing patterns.