RE: Sunday Roast takes time to cook perfect # EUA Asset sale31 Jan 2022 10:13
PLATINUM
Average: $1066
High : $1275
Low : $890
We see a positive outlook for platinum prices as rising demand offsets a supply surplus.
Platinum had a difficult year in 2021, shedding just under 10% with supply disruptions and semiconductor shortages having a deleterious effect on auto sales. The decline was futher impacted by large ETF redemptions in H2.
Looking ahead, as the global economy recovers we see increased demand coupled with an easing of the chip-induced issues. As such good growth should be observed in the jewellery, automotive, industrial … and by extension in the investment markets. We see gains for platinum in 2022 … but not stellar.
PALLADIUM
Average: $1959
High : $2350
Low : $1410
Palladium had quite a rollercoaster year in 2021 being easily the best performing precious metal in H1, hitting an all time record high of $3016 in May 2021 on supply tightness, but by the end of H2 it was the worst, down 22% on the year.
Underlying the price volatility has been chip shortages and its impact on auto production. If as expected global market starts to normalize in 2022 then it follows we should see a revival in auto demand, rising from 75m light vehicles in 2021 to a forecasted 83m in 2022, then to 92m by 2023 and by extension, for palladium demand to also increase. As such, we see the worst being behind us.
Just as 'demographics are destiny' … the same principle applies to the slow and inexorable shift into new technologies. And this move does not favour palladium much longer term.The fundamentals point to structurally weaker demand with EV's gaining market share, which may have a deleterious impact on palladium prices. For now though things look just dandy.
With thanks
Ross Norman
MetalsDaily.com
ross@metalsdaily.com
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