Page 19 - Bullion World Volume 5 Issue 07 July 2025

Bullion World | Volume 5 | Issue 07 | July 2025

Palladium's future will likely depend on its evolving In contrast, PGMs are seeing increasing scrutiny from
use in tandem with platinum. The overlap of utility, investors and industry alike. Sentiment at Platinum
especially in green hydrogen production and fuel cells, Week in London was notably more cautious, bordering
underscores the potential of PGMs to remain integral on pessimistic. However, at IPMI, there was a more
in the low-carbon economy. constructive tone, with greater lateral thinking and
openness to evolving industrial use cases. The
China’s Strategic Positioning optimism—however tentative—lies in collaboration,
Recent headlines around China’s platinum innovation, and a deeper understanding of how
imports—10 tonnes recorded in April alone—are environmental policy and technology will intersect with
not unprecedented but do highlight a deliberate metal demand.
accumulation strategy. True to its contrarian
investment pattern, China continues to buy PGMs Structural Constraints on the Supply Side
when prices are low, securing resources that may The mining landscape, too, is under stress. In Russia,
regain favour. Although some suggest this metal is Norilsk Nickel, the world’s largest palladium producer,
being stocked by jewellers, that narrative may be faces high financing costs and disrupted supply
overstated. Chinese consumers still show strong chains, putting expansion plans on hold. In South
preference for yellow or white gold, and platinum Africa, persistent challenges such as load shedding,
jewellery demand—while certainly improving—lags stretched balance sheets, and delayed capex plus
behind. recent flooding continue to limit supply growth. As a
result, even if demand softens, supply constraints may
Nonetheless, China’s industrial appetite remains real, cushion prices to some extent.
and once PGMs are imported into China, they are
seldom re-exported. This tightens supply in markets Final Thoughts
such as London and applies pressure on refineries, PGMs remain critical to the energy transition and
especially with geopolitical tensions and tariff threats industrial technology landscape, but their future lies
hanging in the air. in how well the industry adapts to shifting patterns
in demand, geopolitical risks, and sustainability
Global Macro Factors mandates. Collaboration between miners, refiners,
and Market Sentiment and technology firms will be key in redefining the role
At the macro level, we are witnessing a changing of these metals in a greener, more digitally connected
response to geopolitical and economic triggers in gold future.
and PGMs. Gold’s reaction to tariff headlines, central
bank comments, or interest rate shifts is becoming As we look forward, all stakeholders need to continue
increasingly muted, indicating a “crowded trade” engaging openly, investing in innovation, and sharing
scenario. The market may be reaching saturation, knowledge across borders—because shaping the next
with investors showing diminished sensitivity to news chapter of the PGM market will require a unified and
events. proactive approach.

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