World’s Most Expensive Metal Palladium hits 6 month high as Russia invades Ukraine
The effect of the war between Russia and Ukraine has started showing globally. On the one hand, where the stock market is continuously collapsing, the prices of crude oil have also started touching the sky. Even though its effect is not visible on the prices of petrol and diesel yet, the prices are expected to increase soon. The Palladium hit a 6 month high as Russian forces invaded Ukraine after President Vladimir Putin authorized what he called a special military operation.
Russia is the largest producer of palladium. It is also used in petrol and hybrid vehicle exhausts, mobile phones, electric equipment, dental treatment, jewelery.
What Palladium is?
Palladium is a shining white metal. It is part of the group containing platinum, ruthenium, rhodium, osmium, iridium. It is found in large quantities in Russia and South Africa. It is extracted as a byproduct of platinum and nickel. It is at the top of the world’s most precious metals. The main reason for this is the scarcity of this metal.
Governments of all countries are getting strict regarding carbon emissions from vehicles. As a result, the demand for this metal has increased. However, there is a big gap between the supply and demand of palladium. This is the reason that its price is more than gold and platinum.
What palladium is used for?
The catalytic converters used in the exhausts of petrol and hybrid vehicles are made from palladium. For the first time in 2009, the sales of petrol vehicles exceeded that of diesel vehicles. 80% of palladium is used to convert toxic gases like carbon monoxide, nitrogen dioxide into less harmful gases like nitrogen, carbon dioxide.
According to data from ICBC Standard Bank, 75 to 80% of palladium extracted from mines is used to make catalytic converters. During this, 2 to 7 grams of it is used. This converter converts harmful gases like carbon monoxide and nitrogen dioxide into water vapor. In such a situation, the Russo-Ukraine war makes this palladium expensive, then the price of the car is also bound to increase.
Palladium also used in phone, dental treatment
About 0.015 grams of palladium is used in a phone. Palladium is embedded in the phone’s microprocessor and printed circuit boards. Similarly, when a tooth goes beyond ‘drill and fill’ treatment, palladium alloys are used for the crown and bridge. Even though Palladium is being used on a very small scale in phones, it is also essential in phone manufacturing. If the war increases the price of palladium in Russia, then South Africa can also increase its prices. In these circumstances, such a situation should not be created as if the semiconductor had become for the car.
Pallavi Singh, Vice President of SPPL, which manufactures devices for US electronic brand Westinghouse, said that the war started between Russia and Ukraine could once again have a bad effect on semiconductors across the world. Many countries have not yet recovered from the semiconductor shortage. Both the countries are exporters of raw materials used in manufacturing of chipsets and semiconductors. Russia is also the largest exporter of palladium, which is used to design phone circuits and microprocessors. This tension can escalate the cost of supply of materials.
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