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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 443.45+1.4%4:00 PM EST

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To: Horgad who wrote (154112)3/10/2020 5:11:17 PM
From: TobagoJack3 Recommendations

Recommended By
Dr. Voodoo
ksera
sense

   of 219591
 
Pssst, am keeping an eye on this ball even as all else and others go as nuts as Pd

bloomberg.com

Palladium Substitution Draws Nearer With Catalyst Technology

Elena Mazneva

The auto industry took a step nearer to curbing its dependence on palladium after BASF SE developed a new catalyst technology for gasoline cars that substitutes some of the metal with cheaper platinum.

The technology, funded by two South African platinum miners, has been tested and doesn’t compromise emissions standards, BASF said Tuesday. The company expects the technology to mainly be implemented in 2023 models, with some applications possible the year before, after automakers test and certify that it meets government regulations on each vehicle, according to a spokesman.

Platinum rose as much as 3.2% before paring some gains as the announcement marked one of the first signs that manufacturers can overcome technical barriers to using the metal to replace palladium. The latter has more than doubled over the past 18 months as the introduction of stricter emissions standards boosted demand and widened a supply deficit.



Partial substitution might not fully eliminate the palladium deficit, but would boost platinum, according to the World Platinum Investment Council.

Platinum has languished as consumers turned away from the diesel vehicles in which the metal is mainly used. It’s now just over a third of the price of palladium.

The BASF spokesman said the amount of platinum used in the new catalysts would depend on the vehicle type and sales region. The company’s mining partners are Sibanye Stillwater Ltd. and Impala Platinum Holdings Ltd.

The development should support platinum in the longer term, but it could take a couple of years before the new catalyst is widely used by automakers, said Michael Sheehan, a portfolio manager at Orion Commodities Management LP.

Palladium declined Tuesday, with Citigroup Inc. predicting the coronavirus outbreak would lower Chinese consumption of the metal this year.

(Updates with BASF comment on implementation in second paragraph)
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