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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.
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.