Palladium: Supply gap remains intact – Commerzbank

FXStreet Insights Team FXStreet

Commerzbank’s Carsten Fritsch, citing Metals Focus, reports that the palladium market is set for a fifth consecutive annual supply deficit in 2026. Demand is forecast to edge lower overall, with automotive demand broadly stable and no sharp e‑mobility impact yet. Supply is seen flat as weaker mine output is offset by more recycling, while investor appetite remains subdued versus Platinum.

Fifth straight deficit with flat demand

"According to Metals Focus, the palladium market is expected to post a supply deficit of 376,000 ounces this year. This would mark the fifth consecutive year of a supply deficit."

"Demand for palladium is forecast to fall by 1% to 9.56 million ounces, whilst demand from the automotive industry – the dominant source of palladium demand – is expected to remain virtually unchanged from the previous year. Thus, a noticeable decline in demand due to e-mobility is not expected."

"Palladium supply is projected to remain virtually unchanged at 9.19 million ounces, as the decline in mine production is offset by an increase in recycling. Metals Focus attributes the price discount of palladium relative to platinum to lower investor interest in palladium."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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