Palladium futures today collapsed by more than $ 100 dollars per ounce on their worst day for more than 19 years. The price has collapsed from a record level of about $ 1,615 per ounce to the expected huge leap in demand from the automotive industry.
June’s Comex futures fell 6.2 percent today, holding more than $ 1412.50 per ounce. Last such a decline was reported on February 23, 2000. Mark Cutifani, CEO of Anglo American, told Financial Times that the recent high-rally palladium has created a balloon that can make many car manufacturers replace it as platinum in the production of catalysts.
“We expect palladium to stay around its current levels for a while, because the price that will have to be paid for switching to platinum is unlikely to be worth it.” – says Cutifani. “But with time, it will change and platinum will” shine “again.
Over the past seven months, the price of palladium has jumped 80%, even surpassing gold and platinum by value.
Trader Martin Nikolov