China has suddenly started exporting palladium in response to sanctions against Russia. According to China Customs, from January to May of this year, the country exported 5.2 thousand troy ounces of this metal to Italy, Canada, and Hong Kong. In 2021, only 55 troy ounces were exported.
It is assumed that this metal originates from Russia, which China resells. Russia produces 40% of the palladium mined in the world, and South Africa is also a major supplier. Moreover, China is one of the largest buyers: the country accounts for 30% of the world’s consumption of platinum group metals.
Despite sanctions on Russian palladium, it is still being produced and exported. There are difficulties with transportation, however. In addition, the London Platinum and Palladium Market suspended the reliable supplier status (good delivery) of two Russian refiners.
The metal China exports could potentially be from a different country, according to similar comments from Sergey Grishunin of the National Rating Agency (NRA). In his opinion, it could be from South Africa or Zimbabwe.
Earlier, the US published a list of 570 products with increased tariffs. Although silver and palladium have been excluded from the list, platinum and titanium have been added to it. These strategic items can’t be replaced, so in many cases, they are unable to find any replacement items.
Russia is the largest exporter of palladium, last year it exported 6.5 million U.S. dollars worth of it.
