Strict emissions standards increase palladium consumption

China's National 4 emissions regulations are leading to an 11% increase in the nation’s palladium demand.

China’s autocatalyst palladium demand rose 11% in to 1.115 million ounces in 2011, outpacing the single-digit growth in the automotive industry, as stricter regulations required carmakers to use more platinum metals.

With the increase, China is now the world’s third-largest consumer of autocatalyst palladium after the U.S. and Europe, according to a report published by refiner Johnson Matthey.

The refiner predicted a steady rise in the consumption of autocatalyst palladium by the growing auto industry, as more and more regions across the country adopt tougher emissions standards. Johnson Matthey expects 2012 will be “a positive year for palladium demand”, as the adoption of China 5 standards become more widespread.