Palladium futures extended their downward momentum down 5.22% for the day below $2,000 per troy ounce,the lowest since July 2020. The global computer chip shortage has hit car manufacturing catalytic converters demand
Palladium futures extended their downward momentum down 5.22% for the day below $2,000 per troy ounce,the lowest since July 2020. The global computer chip shortage has hit car manufacturing catalytic converters demand.
Palladium futures decline accelerates with chip shortage over the year.
Down -5.22% for the day -16.61% for the week -24.08% for the month and -19.17% for the year
The latest plunge was fueled by Japanese automakers Honda Motor, Nissan Motor and Toyota Motor sales in China falling sharply in August as a chip shortage hit vehicle production in the world’s biggest car market. Palladium is used in vehicle pollution-reducing catalytic converters. Automakers from US group General Motors to India’s Mahindra and Japan’s Toyota have slashed output and sales forecasts.
The World Platinum Investment Council reported expectations of higher costs of palladium to spur a gradual switch by auto makers to use more platinum in gasoline-powered engines. The palladium is used in vehicle pollution-reducing catalytic converters, Prospects that electric vehicles will gradually replace those using gasoline also weights on prices.
From the TradersCommunity News Desk