Johnson Matthey released its 2026 PGM Market Report ahead of London Platinum & Palladium Market Week. The report forecasts the palladium market will move into a small surplus this year. This shift ends a persistent supply deficit that lasted from 2012 to 2025.
Palladium demand is projected to decline by 9%. Contracting production of gasoline-powered cars is driving this drop in demand. Russian primary supply is expected to hit a two-decade low. Double-digit growth in secondary supply from recycled automotive scrap offsets the primary supply fall.
Palladium prices fell between 1% and 1.6% following the report. The metal traded at approximately $1,511 per ounce on May 14.