Core Insights - The article discusses the characteristics, supply chain, and demand dynamics of platinum and palladium, highlighting their importance in various industries, particularly in automotive catalytic converters and jewelry [7][8][10][13]. Group 1: Basic Concepts - Platinum (Pt) and palladium (Pd) are transition metals known for their high density, ductility, and low reactivity, with significant applications in catalysis [7][8]. - Platinum group metals (PGMs) include platinum, palladium, iridium, rhodium, osmium, and ruthenium, which are rare and primarily found in South Africa, Russia, and Zimbabwe [10]. Group 2: Industry Chain Overview - The platinum and palladium industry chain consists of upstream mining, midstream refining, and downstream applications, with mining primarily yielding palladium as a byproduct of nickel-copper ores [16]. - The supply of platinum and palladium is concentrated, with primary production accounting for approximately 70% and recycling for about 30% [16]. Group 3: Global Supply Situation - Global platinum and palladium production has been declining, with platinum production expected to be 170 tons and palladium at 190 tons in 2024, reflecting a compound annual growth rate (CAGR) of -0.9% and -1.3% respectively over the past decade [22]. - South Africa holds 77% of the world's platinum reserves, while China's reserves are minimal, leading to a significant reliance on imports to meet domestic demand [21]. Group 4: Demand Analysis - The demand for platinum is diversified across sectors, with automotive applications accounting for 37%, chemicals for 16%, jewelry for 24%, and investment for 8.5% [16]. - Palladium demand is heavily concentrated in the automotive sector, particularly for gasoline vehicle catalytic converters, which represent 82% of its total demand [16]. Group 5: Trade and Import/Export Dynamics - In 2024, global platinum imports are projected to be 700 tons, with India being the largest importer, followed by China [39]. - For palladium, global imports are expected to reach 453 tons, with Germany as the leading importer [40]. Group 6: Future Outlook - The article suggests that the supply of platinum and palladium may remain tight due to production challenges faced by major mining companies, exacerbated by extreme weather and infrastructure issues in South Africa [30]. - The demand for palladium is anticipated to decline slightly due to the increasing adoption of electric vehicles and the substitution of platinum for palladium in catalytic converters [62].

Core Viewpoint - The article discusses the upcoming launch of platinum and palladium futures on the Shanghai Futures Exchange, providing an overview of the platinum and palladium industry, including their properties, applications, and market dynamics [4][12]. Group 1: Platinum and Palladium Overview - Platinum and palladium are part of the platinum group metals, with low abundance in the Earth's crust, primarily found in South Africa, Russia, and Zimbabwe [4][5]. - Both metals exhibit excellent catalytic properties due to their unique electronic structures, which allow them to lower activation energy in chemical reactions [4][9]. - Common forms of platinum and palladium in circulation include metal ingots and sheets, with a purity requirement of at least 99.95% for trading [12][13]. Group 2: Industry Chain Structure - The platinum and palladium industry chain consists of three main segments: upstream exploration and mining, midstream refining and processing, and downstream applications and recycling [14][16]. - The demand for palladium is heavily concentrated in the automotive sector, while platinum has a more diversified demand across various industries, including automotive, jewelry, and investment [16]. Group 3: Demand Dynamics - The automotive industry is the largest consumer of both metals, with projections indicating that by 2025, automotive demand will account for 41% of platinum and 82% of palladium consumption [16]. - In the jewelry sector, platinum is favored for its durability and aesthetic qualities, contributing significantly to its demand, while palladium's jewelry consumption is minimal [16]. - Industrial applications for platinum are broader due to its superior stability, with approximately 28% of platinum demand coming from this sector, compared to only 16% for palladium [16].