MARKET OVERVIEW
Platinum group metals (PGMs) are rare precious metals with unique physical properties that are used in diverse industrial applications. Palladium, like gold, silver and platinum, is a precious metal, as well as one of the six PGMs, which also include platinum, rhodium, ruthenium, iridium and osmium.
The unique physical characteristics of PGMs include:
- Strong catalytic properties;
- Excellent conductivity and ductility;
- High level of resistance to corrosion;
- Strength and durability; and
- A high melting point.
Palladium’s primarily used as a thin coating on ceramic filters insider of catalytic converters in automobile engines. It acts as a catalyst to convert carbon monoxide to carbon dioxide and converts hydrocarbons and oxides of nitrogen into pure oxygen, nitrogen and water. Demand for palladium is expected to exceed supply over the next few years, driven primarily by the continued growth in automobile sales.