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].