2017-2022 China Palladium Industry Market Status Analysis and Investment Prospect Evaluation Report

    The supply of palladium is mainly composed of mine production and catalyst recycling. Overall, palladium supply rose steadily as the price of palladium continued to rise before 2002; in 2001, after the bursting of the Internet economy bubble, palladium prices fell sharply, and palladium supply gradually became stable. After 2005, with the strong development of emerging economies, especially China, driving the vigorous development of the automobile industry, the price of palladium has also risen year by year, and the supply has steadily increased. In recent years, palladium prices have stabilized under the influence of the decline in mine production.

      From the perspective of supply countries, the mine supply of palladium mainly comes from Russia, South Africa and North America (mainly Canada). According to Johnson Matthey's 2016 data, the proportion of supply from Russia, South Africa and Canada reached 41.02%, 38.07% and 13.21% respectively. From the perspective of the supply situation of mines in various regions in recent years, the mine supply in Russia and South Africa has been flat or declining, while the supply of mines in North America has been more volatile. Overall, the supply of mines has been relatively stable in recent years.

        From the perspective of palladium recycling, it is mainly divided into automobile exhaust catalyst recycling and electronic recycling, with jewelry recycling accounting for only a small part. For catalyst recycling and electronic recycling, both have increased in recent years, especially catalyst recycling. With the development of the economy, the number of cars in the world has increased year by year, and the amount of car scrap will also increase accordingly, which can drive the increase in the output of recycling enterprises. For recyclers, due to the relatively stable recycling costs, the rise in palladium prices has greatly stimulated their willingness to produce. In recent years, the global strict control of environmental protection policies has increased the requirements for automobile exhaust catalysts, and there are more and more non-compliant vehicles.

        The demand for palladium is mainly a catalyst. Since the 1990s, the demand for palladium as a substitute has risen sharply due to the rising price of platinum, which has also pushed up the price of palladium. Although it is a precious metal, palladium has strong industrial properties, and the price of palladium is mainly related to its industrial demand. In 2009, the global economy gradually recovered. With the improvement of environmental protection standards, the demand for passenger cars continued to expand. The demand for palladium rose year by year, and the price of palladium also rose. We believe that with the expansion of global automobile sales, the demand for palladium can continue to rise. In particular, it should be pointed out that China's exhaust catalysts mainly use palladium. Since 2013, China has raised the emission standards of automobile exhaust catalysts. In this context, the demand for palladium in China is expected to rise significantly.