China imported a record 8.6 tons of palladium in April.
Customs data released May 20 shows these shipments nearly tripled the seasonal average.
Investors drove the surge by exploiting price premiums on the Guangzhou Futures Exchange compared to global spot prices.
This arbitrage activity increased palladium inventories in warehouses linked to the Guangzhou exchange.
Speculative flows currently shape the physical market while industrial demand from the auto sector remains muted.