Palladium Price History

Palladium's price history is defined by extreme supply concentration and a single dominant use case: gasoline catalytic converters. Roughly 80% of palladium demand comes from the auto industry. Approximately 40% of global supply comes from Russia (Norilsk Nickel), with another 35% from South Africa. This razor-thin supply-demand balance has produced some of the most dramatic price swings in commodity markets.

The early 2000s delivered palladium's first major price shock. Fears of Russian stockpile depletion sent prices surging above $1,100 per ounce in January 2001. Russia had been selling palladium from Soviet-era state reserves, and reports that these stockpiles were running low triggered panic buying across the auto industry. Ford Motor Company purchased over $1 billion worth of palladium at peak prices, then took a write-down of approximately $1 billion when prices collapsed.

The period from 2016 to 2022 marked palladium's most extraordinary bull run. A persistent supply deficit lasted nearly a decade. Tightening emissions regulations worldwide, including Euro 6d in Europe, China VI standards, and U.S. Tier 3 requirements, increased the amount of palladium loaded into each catalytic converter.

Global mine production remained flat throughout this period. Palladium is primarily produced as a byproduct of platinum and nickel mining, so supply does not scale independently in response to higher prices. The bull run culminated in March 2022 when the Russia-Ukraine conflict pushed palladium to its all-time high of approximately $3,440 per ounce.

Since then, the EV transition has fundamentally altered the demand trajectory. Automaker substitution of cheaper platinum has further eroded palladium's dominance in catalytic converters, and prices have fallen sharply from the 2022 peak.