Palladium Supply And Demand
Palladium is extremely rare; annual global production is approximately 200,000 ounces. Palladium deposits are spread throughout the globe, but there are only a handful of known reserves of significant size. Those include deposits in South Africa, Montana (United States), Ontario (Canada), and Russia.
South Africa and Russia have historically accounted for the majority of global palladium mining, and South Africa is home to a significant portion of known PGM reserves. The United States and Canada are also major palladium mining locations, though the U.S. has historically been a major palladium importer. As recently as 2008, the U.S. relied on imports for close to 80% of palladium consumption; that figure has declined to about 60% in recent years [see also Commodity Investing: Physical vs. Futures].
The concentration of both reserves and mining output in two emerging markets can have obvious ramifications on the price of the metal, especially considering that supply disruptions in the form of mine strikes, natural disasters, or other occurrences are not uncommon.
Country 2009 Production 2010 Production PGM Reserves
U.S. 12,700 11,600 900,000
Canada 6,500 9,400 310,000
Russia 83,200 87,000 1,100,000
South Africa 75,100 73,000 63,000,000
Zimbabwe 5,680 6,600 n/a
Other Countries 9,230 9,800 800,000
Global Total 192,000 197,000 66,000,000
In recent years, the relative scarcity of platinum group metals has sparked the development of technologies to recycle these materials. In the U.S., the recovery of palladium and platinum from used catalytic converters has become a lucrative business, and theft of these devices has become increasingly common as metal prices have jumped. Technological advancements have allowed the number of ounces generated by recycling converters to skyrocket in recent years; supply from this activity increased from only 195,000 ounces in 1999 to more than 1.1 million ounces in 2008 [see also Three Mining Companies With Robust Yields].
According to the US Geological Survey, an estimated 26,000 kilograms of platinum group metals was recovered from new and old scrap in the U.S. in 2010. Palladium can also be produces in nuclear fission and extracted from spent nuclear fuel. However, the quantities produced from this method are not significant.
Palladium is extremely rare; annual global production is approximately 200,000 ounces. Palladium deposits are spread throughout the globe, but there are only a handful of known reserves of significant size. Those include deposits in South Africa, Montana (United States), Ontario (Canada), and Russia.
South Africa and Russia have historically accounted for the majority of global palladium mining, and South Africa is home to a significant portion of known PGM reserves. The United States and Canada are also major palladium mining locations, though the U.S. has historically been a major palladium importer. As recently as 2008, the U.S. relied on imports for close to 80% of palladium consumption; that figure has declined to about 60% in recent years [see also Commodity Investing: Physical vs. Futures].
The concentration of both reserves and mining output in two emerging markets can have obvious ramifications on the price of the metal, especially considering that supply disruptions in the form of mine strikes, natural disasters, or other occurrences are not uncommon.
Country 2009 Production 2010 Production PGM Reserves
U.S. 12,700 11,600 900,000
Canada 6,500 9,400 310,000
Russia 83,200 87,000 1,100,000
South Africa 75,100 73,000 63,000,000
Zimbabwe 5,680 6,600 n/a
Other Countries 9,230 9,800 800,000
Global Total 192,000 197,000 66,000,000
In recent years, the relative scarcity of platinum group metals has sparked the development of technologies to recycle these materials. In the U.S., the recovery of palladium and platinum from used catalytic converters has become a lucrative business, and theft of these devices has become increasingly common as metal prices have jumped. Technological advancements have allowed the number of ounces generated by recycling converters to skyrocket in recent years; supply from this activity increased from only 195,000 ounces in 1999 to more than 1.1 million ounces in 2008 [see also Three Mining Companies With Robust Yields].
According to the US Geological Survey, an estimated 26,000 kilograms of platinum group metals was recovered from new and old scrap in the U.S. in 2010. Palladium can also be produces in nuclear fission and extracted from spent nuclear fuel. However, the quantities produced from this method are not significant.
