About Palladium
Palladium is used mostly in catalytic converters for gasoline and hybrid vehicles. It is a small, thinly traded market where Russia and South Africa account for most mine supply, so price swings can be sharp.
What moves the palladium price
- Light-vehicle production, and the shift towards battery-electric cars that need no catalyst.
- Supply risks from Russia and South Africa.
- Substitution: carmakers swap palladium for platinum when the price gap gets wide.
- Recycling volumes from scrapped catalytic converters.
A market tied to the car industry
Roughly four-fifths of palladium demand comes from autocatalysts for gasoline and hybrid vehicles. That makes global light-vehicle production, emission rules (especially in China, Europe and the US) and the pace of battery-electric adoption the core demand drivers. Hybrids still need catalysts, so their growth partly offsets the loss from fully electric cars.
Thin liquidity, big moves
The palladium market is small and supply is concentrated in Russia and South Africa, so sanctions headlines, smelter outages or a shift in fund positioning can cause very sharp moves. Recycling from scrapped converters is a growing source of supply and tends to rise when prices are high. Given the volatility, consider wider stops and smaller positions than you would use for gold; our risk guide shows how.
Contract specifications
| Benchmark future | NYMEX Palladium (PA), CME Group |
|---|---|
| Contract size | 100 troy ounces |
| Minimum tick | $0.50 per ounce = $50 per contract |
| Contract months | March, June, September, December |
| Settlement | Physical delivery |
| Spot reference | XPD/USD and the LBMA/LPPM palladium prices |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
Spot palladium trades over the counter during the global week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
Contract basics
NYMEX Palladium (PA) covers 100 troy ounces per contract and is quoted in US dollars per ounce.
Quote unit
USD per troy ounce. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Palladium FAQ
What moves the price of palladium?
Light-vehicle production, and the shift towards battery-electric cars that need no catalyst. Supply risks from Russia and South Africa. Substitution: carmakers swap palladium for platinum when the price gap gets wide. Recycling volumes from scrapped catalytic converters.
When does palladium trade?
Spot palladium trades over the counter during the global week. CME Globex trades almost around the clock: Sunday to Friday, 6:00 pm to 5:00 pm US Eastern Time, with a one-hour daily break.
What is the standard palladium contract?
NYMEX Palladium (PA) covers 100 troy ounces per contract and is quoted in US dollars per ounce.
What is palladium mainly used for?
Catalytic converters in gasoline and hybrid cars, which turn toxic exhaust gases into less harmful ones. Electronics, dentistry and jewellery account for the rest.
Why did palladium fall after its 2022 peak?
Slower car production, substitution by cheaper platinum, rising recycling and expectations of lower demand from electric vehicles all weighed on prices.