Platinum and Palladium prices came under pressure yesterday and reversed most of the gains from the previous day. The price decline occurred much earlier than for Gold and was certainly not related to this. The Platinum price had previously risen almost to its 11-year high from the end of last week again. The high price volatility of the last few days could indicate that the end of the price rally is near.

Russian producer expects a balanced market for Palladium this year and next

"A major producer of nickel and Platinum group metals from Russia has published new forecasts for Platinum and Palladium. The Platinum market is expected to be more or less balanced this year and next, if investment demand is excluded. Demand for Platinum is expected to decline somewhat this year, as demand from the automotive industry is projected to fall significantly. The expected increases in jewellery demand and demand for other industrial applications will not be able to fully compensate for this."

"Including investment demand, the company anticipates a supply deficit of 200 thousand ounces this year and 300 thousand ounces next year. The company is therefore more cautious than the consulting firm Metals Focus, which in May forecast a supply deficit for the Platinum market in 2025 including physical investment demand (bars and coins) that is more than twice as high."

"The aforementioned Russian producer also expects a balanced market for Palladium this year and next, with demand from the automotive industry also expected to shrink and investment demand for Palladium unlikely to play a significant role. The company attributes the sharp rise in Platinum prices since mid-May to higher imports from China and the US. In China, the jewellery industry is said to be responsible for this, substituting Platinum at the expense of Gold, while investors in the US are worried about sectoral tariffs on Platinum group metals."