Palladium market to monitor US auto sales after March slowdown

UNITED STATES April 12 2017 9:24 AM

NEW YORK (Scrap Register): Palladium traders will be watching to see if U.S. auto sales remain soft, as was the case last month, Mitsubishi pointed out. 

The metal is used for catalytic converters. New U.S. car sales disappointed in March, coming in at a 13-month annualized low of 16.5 million units, the firm noted. 

“This suggests sales are plateauing, as might be expected after eight successive years of growth and a tightening of credit conditions as interest rates rise,” said Mitsubishi. 

Although the rate of U.S. sales growth is slowing, sales in the light duty truck sector continue to forge ahead, rising 5.9% in the year to date compared with an 11.5% fall in sales of conventional cars, Mitsubishi added.

The firm points out that light duty trucks such as SUVs and pickups tend to have larger engine displacements so use more palladium in emissions control. 

“The outlook for the U.S. car market critically depends on whether ‘Trumponomics’ will deliver some form of fiscal stimulus in the U.S. – perhaps personal tax cuts and more new job creation, which could help sales figures could well creep higher,” Mitsubishi concluded.