Nornickel Sees Palladium Deficit At 600,000 Ounces In 2022

Russia's Nornickel, the world's largest producer of palladium and high-grade nickel, expects the palladium market to be in a 600,000 ounces deficit this year, and the delisting of Russian refineries from the London Platinum and Palladium Market would provoke serious problems with the supply of palladium globally, the company said in its metals market review

MOSCOW (UrduPoint News / Sputnik - 30th November, 2022) Russia's Nornickel, the world's largest producer of palladium and high-grade nickel, expects the palladium market to be in a 600,000 ounces deficit this year, and the delisting of Russian refineries from the London Platinum and Palladium Market would provoke serious problems with the supply of palladium globally, the company said in its metals market review.

"The arbitrary decision of the London Platinum and Palladium Market (LPPM) to delist from its good delivery list the Russian refineries that Nornickel uses to process its raw materials into refined palladium have created a major shortfall of supply of Good Delivery branded sponge and ingots.

This will create a major disruption in supply in 2023 as soon as the market demand, especially automotive production, recovers," the report says.

Another major risk on the production side is disruption by South African refineries, it added.

Nornickel revised the 2022 global palladium market deficit forecast to 600,000 ounces from 100,000 ounces, and expects it to expand to 800,000 in 2023.