US auto sales continue to drive Palladium demand

UNITED STATES December 04 2014 11:40 AM

NEW YORK (Scrap Register): US car sales continue to bode well for palladium demand, which is used in catalytic converters, said Commerzbank.

Analysts cite Bloomberg data showing that holdings in palladium exchange-traded funds increased by 57,100 ounces at the start of the week, the largest inflow for nearly four weeks.

“Evidently there was increased demand for palladium among some market players in anticipation of positive car sales figures,” said Commerzbank.

The bank cites data from Ward’s Automotive Group showing that 17.1 million vehicles were sold in the U.S. in November on a seasonally adjusted and annualized basis, up 5.5% year-on-year.

“Because the U.S. market is gasoline-dominated, this should be reflected above all in robust demand for palladium,” Commerzbank added.

Gasoline-powered vehicles can use palladium, whereas diesel-powered ones need platinum.