Platinum and palladium, used in catalytic converters for diesel and petrol engines respectively, have come roaring back this year, says Manuela Badawy in Barron’s, and there is scope for more price rises.
Relatively high stockpiles may prove to be a mild barrier, but ongoing cutbacks in capital expenditure in South African mines, a key source of both metals, should bear down on supply.
Car sales in the world’s top markets, China, Europe and America, have risen every year since the crisis and are currently in fine fettle. In the first quarter, they rose by between 6% and 8% in both Europe and China.