Global demand for palladium is supposed to fall by 6 per cent to 6.85 million oz.

Demand for palladium from the autocatalyst sector increased by 7 per cent to 4.14 million oz in 2006. The largest increase in purchases came from the Japanese auto industry, up 15 per cent, as a result of continuous substitution of palladium for platinum.

Demand for palladium in electronic applications grew to 1.055 million oz in 2006, an increase of 9 per cent, driven by strong consumer demand for portable electronic devices.

The use of palladium in jewellery dropped by 22 per cent to 1.12 million oz, with the strongest decline in China – down 28 per cent – related to full pipeline stocks and strong recycling of Pd950. At the same time, demand doubled in North America to 40,000 oz.