22.07.202615:25:29UTC+00Palladium Recovers from One-Year Low

Palladium futures climbed back above $1,200 per ounce, rebounding from a near one-year low reached at the end of June, as resilient demand for hybrid vehicles more than offset expectations of a looming global surplus. Demand for hybrid electric vehicles (HEVs) has remained strong, with major automakers increasingly integrating software-defined technologies into these models. This trend continues to underpin palladium consumption, given its critical role in catalytic converters.

At the same time, Nornickel, the world’s largest palladium producer, forecasts a global surplus in 2026, as accelerating adoption of fully electric vehicles is expected to weigh on long-term demand and keep prices below levels seen at the beginning of the year. The Russian miner also plans to relocate its refining operations to Monchegorsk, a move aimed at enhancing production efficiency and boosting mined output.

Meanwhile, expectations that the Federal Reserve will deliver at least one more interest rate hike before year-end have curbed appetite for non-yielding assets such as palladium, capping the metal’s upside potential.