Analysts: demand for palladium is expected to grow, while nickel is expected to decline
This year, demand for palladium in the world will grow by 3%, Norilsk Nickel forecasts. The global automotive market is partially recovering from last year, which will serve as an appropriate driver, the company said in a review. Experts estimate the expected demand at 10.3 million ounces. Supply will increase slightly, the company expects, because its production was restored after last year's crashes. Demand will still exceed supply - experts estimate the shortage of the metal at about 3 tons, but the market situation will be close to the equilibrium, they said. According to the estimates of the company, the global demand for nickel this year will grow at a slower pace - it will drop by 6 percentage points as compared with the last year and will amount to 11%. This will be a result of higher inflation in developed countries and the uncertain outlook for the global economy. The expected demand volumes are estimated at 3.17 million tons.