"Palladium nears 2025 highs again and attempts to solidify above $1500 per ounce, extending a rally that has steadily rebuilt momentum over the past two months. Palladium movements seem to reflect a rare alignment of supportive demand signals from Germany and China, softer EV adoption trends that ease substitution risk and persistent concerns about Russian supply reliability. Palladium's latest advance has been underpinned by improving signals from Germany and China, two markets that typically anchor global auto demand."
"Germany's factory orders rose 1.5 percent in October, and industrial production climbed 1.8 percent, a combination that points to stabilizing industrial activity even as domestic car registrations continue to cool chronically. This divergence is important because it suggests the manufacturing base is recovering faster than consumer auto demand, often an early sign of production-led restocking that tends to support auto catalyst metals such as palladium."
"According to the China Passenger Car Association, China presented a similarly nuanced picture. Retail auto sales declined 8.1 percent in November and slipped 1.1 percent month over month, but exports hit a record, rising 52 percent to 601,000 units. New-energy vehicle sales grew only 4.2 percent year over year, undershooting expectations and reinforcing the theme that the domestic EV momentum is cooling faster than previously assumed."
Palladium is approaching 2025 highs and attempting to hold above $1,500 per ounce after a two-month rally that rebuilt market momentum. Supportive demand signals are emerging from Germany and China while softer electric-vehicle adoption reduces substitution risk and concerns persist about Russian supply reliability. Germany reported a 1.5 percent rise in factory orders in October and a 1.8 percent increase in industrial production, suggesting manufacturing recovery outpacing consumer car registrations and signaling potential production-led restocking. China showed an 8.1 percent decline in retail auto sales in November and a 1.1 percent month-on-month drop, but exports surged 52 percent to 601,000 units. China’s trade surplus exceeded $1 trillion, led by a 5.4 percent export increase, sustaining high industrial utilization and supporting global palladium demand.
Read at London Business News | Londonlovesbusiness.com
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