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Platinum prices are expected to steadily rise over the next two years and palladium prices to gradually fall as automakers switch to using platinum in autocatalysts to cut costs, a Reuters survey Thursday showed.
Both metals are used in engine exhausts, where they neutralise harmful emissions. Platinum is also used in other industries such as glassmaking, in jewellery and for investment.
Prices plunged last year as a global chip shortage forced automakers to slash production, reducing demand.
Longer term, both metals face reduced demand due to increased production of zero-emission electric vehicles by companies including Tesla Inc, General Motors Co and Volkswagen.
However, some analysts expect significant amounts of platinum to be used in hydrogen fuel cells that are an alternative way to power vehicles.
Platinum sank from a seven-year high of $1 336,50 an ounce in February to $901,30 in September and palladium sank from an all-time peak of $3 017,18 an ounce in May to $1 537,45 in December. — Mining Weekly.
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