These trends may have a negative impact on the platinum group metals (PGM) market. In particular, demand from the auto sector, the largest consumer of these metals as feedstock for catalyst production, is likely to be eroded by the end of this decade.
Last year, automakers tended to shift their interest between palladium and platinum, with preference moving in favor of platinum as a cheaper metal, which traded at $970 per ounce, compared with $2,111 per ounce of palladium (see Fig. 3). In coming years, however, palladium is expected to depreciate further, while platinum is set to return to the growth path.