(Kitco News) – In its recent research report released today, Nornickel, the world’s largest producer of palladium and high-grade nickel, said that it has revised the 2023 palladium market deficit from -0.2 Moz to -0.9 Moz.
The company added it has reviewed the secondary supply of palladium from +9% growth down to 15% fall, while slightly lower than expected primary production from North America will be offset by weaker electronics demand. As for the platinum market, Nornickel expects it to flip into the fundamental deficit this year.
“The increase of primary supply, mainly attributed to resilience of South African mining companies to electricity disruptions, will not be enough to offset rising automotive and industrial demand for platinum, as well as lower recycling,” the authors of the report said.
Importantly, the company sees platinum market deficit of -0.4 Moz this year, comparing to its previous view of balanced market due to lower secondary supply.
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