UBS Revises 12-Month Palladium Outlook to $1,100 as Chinese Imports Decline - Yahoo Finance UK

AI desk brief

UBS lowered its 12-month palladium forecast to around $1,100/oz and cut its December, March and June estimates by $100-$200/oz, citing weaker investor positioning and a more bearish options market. The bank also noted Chinese palladium imports fell from nearly 8.6t in April to 3.4t in September, a drop of about 60%.

Offsetting some of the pressure, UBS said palladium’s widening discount to platinum could improve the economics of substituting palladium into gasoline autocatalysts, offering some support to industrial demand. Overall, the revised view points to softer financial sentiment and weaker physical demand, with substitution providing only partial offset.