Morning Bites

📌Johnson Matthey expects a deficit on Pt and surplus on Pd markets in 2026

🚗 According to the annual JM report, global Pt-Pd demand from the automotive sector is set to decline 3-5% YoY, respectively, in 2026, amid lower output of ICE vehicles globally, while jewellery and investment demand are also set to decline this year. In 2025, the automotive sector accounted for 42% of global Pt and 81% of Pd demand

⛏On the supply side, per JM, primary Pt-Pd output is to shrink 2-8% YoY in 2026. The material decline in Pd production is mainly driven by the updated Nornickel guidance

📊 As a result, in 2026 JM sees a 6% deficit on the global Pt market, while Pd is expected to shift into a surplus of 4% (after a 6% deficit in 2025). However, the Pd forecast might be too conservative, in our view, as market participants historically tend to underestimate global Pd demand

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