Palladium Market Is Expected To Continue To Be Bullish As Demand Grows for Automakers

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May 05, 2021, 08:45 ET

PALM BEACH, Fla., May 5, 2021 /PRNewswire/ -- Palladium is one of the four metals in the precious metals group. It is considered as both a commodity – which makes it a risk asset, hence the bullish momentum during the global economic rebound in summer last year – and a safe haven. It is a rare commodity; 30 times rarer than gold and more precious than all the other precious metals, which makes it a safe haven in times of uncertainty, and it has indeed been acting as such in recent times. It has benefited from both of these statuses during the past year, in very uncertain markets that have been behaving unusually, so it is expected to continue to be bullish in 2021. Both palladium and platinum are mainly used in autocatalytic converters, to reduce harmful exhaust emissions. Palladium is used in engines that run on gasoline, while platinum has a wider range of use in diesel-powered vehicles, which are much more common. The other disadvantage that palladium has, compared to platinum, is that when it comes to physical demand for the jewelry market, there is more demand for platinum than there is for palladium. Both metals, as well as most other markets, saw disruptions in production and demand in 2020, but 2021 looks much more promising, as manufacturing continues to expand pretty fast all over the globe. Active stocks in the markets this week include Canadian Palladium Resources Inc. (OTCQB: DCNNF) (CSE: BULL), Tesla, Inc. (NASDAQ: TSLA), NIO Inc. (NYSE: NIO), Nikola Corporation (NASDAQ: NKLA), Volkswagen AG (OTCPK: VWAGY).

A recent report from FXLeaders said: "The GDP in the Eurozone is expected to be negative in Q1 of 2021, which would mean a recession after another negative quarter in Q3, but that is mostly priced in, since it was anticipated, while according to the IMF, the world GDP is expected to increase by 5.4%, as Christine Lagarde pointed out. The forecasts for automobile demand are for a record high in 2021, driven by two main factors – the growth in demand from the two financial giants, China and the US. The excessive amount of cash injected into the global economy through the monetary and fiscal stimulus programs, should support economic growth and manufacturing on one hand, which will also increase the demand for physical palladium. On the other hand, this cash will also filter through the financial markets and increase the demand for palladium futures in the forex market, which will also have a positive impact on the price."

Canadian Palladium Resources Inc. (CSE: BULL) (OTCQB: DCNNF) (FSE: DCR1) BREAKING NEWS: CANADIAN PALLADIUM REPORTS PRELIMINARY ASSAY RESULTS FOR /T PD-EQUIVALENT - Canadian Palladium Resources Inc. is pleased to provide new assay results for drill holes EB-21-51, EB-21-52, and EB-21-53 at the East Bull Palladium Deposit, located 90 kilometres west of Sudbury, Ontario. These drill holes extend the main Garden/Valhalla Zone palladium mineralization 250 m along strike to the west and intersected a new zone of mineralized inclusion-bearing gabbro located 50 m below the Garden Zone that is interpreted as a feeder dyke or magma conduit for the East Bull Intrusion.

Highlights of the current drill results are:

Hole EB-21-52 intersected both the Garden Zone and a new mineralized inclusion-bearing gabbro that assayed 1.41 g/t Pd Eq over 7 m from 223.0 to 230.0 m, however, the hole terminated in mineralized gabbro. The Company plans to extend this hole to determine the full extent of the new zone that is interpreted as a feeder dyke;
Hole EB-21-53 intersected 2.38 g/t Pd Eq over 6.0 m from 173.0 to 179.0 m. This interval is in the Garden Zone where mineralization is hosted in vari-textured gabbro that has shown consistent mineralization for over 2.5 km strike length.

Wayne Tisdale, Canadian Palladium's CEO, commented, "The discovery of a deeper zone below the main Valhalla/Garden Zone mineralization presents exciting new potential for the East Bull Project. The Company's geologists consider that the new zone may be a mineralized feeder dyke or magma conduit that is a potentially favourable structure for localizing high-grade mineralization. We look forward to getting back on this new target as soon as site conditions permit access after spring breakup."

The Company's protocol is to analyze Rh after initially assaying for palladium, platinum and gold. Once Rh results are received, the Rh concentrations will be reported and Rh will be included as a component of 3PGM (palladium+platinum+rhodium) and included in calculations of palladium equivalent (PdEq). .

The Company is currently drilling and assay results from holes EB-21-54 to EB-21-57 are in progress. The Valhalla/Garden Zone Palladium mineralization is hosted within a 45° north dipping vari-textured gabbro unit near the basal contact of the East Bull Gabbro. Drilling has successfully focused on testing the on strike and downdip extension of this "contact-type" mineralization. Such mineralization structures are typically tens of metres thick. CONTINUED… Read this entire release including full drilling results for the Canadian Palladium news at: https://www.financialnewsmedia.com/news-bull/

Other recent developments in the markets include:

Tesla, Inc. (NASDAQ: TSLA) In the first quarter reported: "we produced just over 180,000 vehicles and delivered nearly 185,000 vehicles. We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity. The new Model S and Model X have also been exceptionally well received, with the new equipment installed and tested in Q1 and we are in the early stages of ramping production.

Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q1 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company's financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles."

NIO Inc. (NYSE: NIO), a pioneer and a leading manufacturer of premium smart electric vehicles in China, recently provided its April 2021 delivery results. NIO delivered 7,102 vehicles in April 2021, representing a strong 125.1% year-over-year growth. The deliveries consisted of 1,523 ES8s, the Company's six-seater and seven-seater flagship premium smart electric SUV, 3,163 ES6s, the Company's five-seater high-performance premium smart electric SUV, and 2,416 EC6s, the Company's five-seater premium smart electric coupe SUV. As of April 30, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 102,803 vehicles.

Nikola Corporation (NASDAQ: NKLA), IVECO and OGE recently announced they have entered into a letter of intent for a collaboration to establish a business structure for transporting hydrogen via pipeline network from production sources to hydrogen fueling stations in support of fuel-cell electric vehicles (FCEVs). The collaboration is being launched with the intent to further define and formalize the roles and responsibilities of the parties and the required collaboration governance to enable execution of objectives to be stated in definitive agreements.

IVECO, a brand of CNH Industrial N.V. (CNHI) and a pioneer in the commercialization and manufacture of vehicles powered by alternative fuels, and OGE, an owner and operator of a 12,000 km natural gas pipeline infrastructure network in Germany, will join Nikola, a leading designer and manufacturer of heavy-duty commercial battery-electric vehicles, FCEVs and energy infrastructure solutions, in advancing hydrogen infrastructure to enable progress and growth of FCEVs in alignment with European policy and industry needs. The primary focus of this collaboration is to further develop hydrogen fueling solutions in Germany in support of the European commercial transportation system and to work with industry partners to install safe, reliable and cost-effective storage and fueling locations for FCEVs. The parties are committed to the development of a hydrogen economy and are focused on implementing the necessary refueling and distribution infrastructure to deliver hydrogen to commercial truck owners safely, reliably and economically.

Volkswagen AG (OTCPK: VWAGY) Volkswagen plans to design and develop its own high-powered chips for autonomous vehicles, along with the required software, Chief Executive Herbert Diess told a German newspaper.

"To achieve optimal performance in light of the high demands that exist for cars, software and hardware have to come out of one hand," Diess told Handelsblatt. Volkswagen did not plan to build semiconductors but wanted to own patents if possible, Diess said, adding that the group's software unit Cariad would develop the expertise and expand. The move is a response to Tesla, which can integrate custom designed chips, allowing the U.S. company to develop new features faster than its competitors.

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