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Russian Invasion May Drive Switch to Platinum From Palladium

  • Up to 400,000 ounces of extra substitution could occur: WPIC
  • Metal’s surplus set to nearly halve in 2022 to 652,000 ounces

Russia’s invasion of Ukraine could lead to a significant increase in platinum demand as automakers substitute the metal for palladium in autocatalysts, according to the World Platinum Investment Council.

That could generate as much as 400,000 ounces of additional demand in the next year if automakers aggressively accelerate substitution in light of the war, according to Trevor Raymond, director of research at WPIC. Russia produces 40% of freshly mined palladium, and Western companies are increasingly shunning its exports.