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Junkyard Palladium Growth an Answer to Waning Resource

  • Yanking out old catalytic converters less costly than mining
  • Push for reclaimed metal comes as demand deficit gains
Auto Scheme Car Recycling

Photographer: Fabrice Dimier/Bloomberg

Corrected

Junkyard palladium is quickly becoming a growth market as mined supplies of the silvery-white metal used to control harmful auto emissions run increasingly short.

With palladium prices up 83 percent since mid-August, recyclers are gaining an edge at a time when some producers are forecasting a deficit of about 1 million ounces for the year. If the raw metal is removed from holders in 2019 at the same rate as 2018, “known inventories” may run out in about a year, said Nicky Shiels, a strategist at the Bank of Nova Scotia.