Strong US Car Sales Good for Platinum, Palladium Prices

Analysts are saying that strong car sales in the United States will be a boon for platinum and palladium, according to Mineweb. The metals are used in catalytic converters for vehicles.

According to the publication:

Particularly good for PGMs was the kind of cars Americans snapped up. The strongest segments were trucks and large SUVs. Heavier fuel consumption requires a beefier autocatalyst and that in turn means the use of more PGMs, which are reactive metals that help clean-up car exhaust.

HSBC analyst James Steel said:

We believe that the increase in demand for heavier vehicles – which also require greater PGM loadings and which have risen sharply in recent months – will act to support prices.

Click here to read the full Mineweb article.