Platinum, palladium price drop accelerates

Compared to this time last year the metal is down 31%. Sister metal palladium was harder hit with Nymex September contracts exchanging hands for $637.20, down 2.5% or $16.30 to the lowest since February last year. The price of palladium jumped to 13-year highs above $900 an ounce in September last year, but has now retreated far into bear territory trading at the lowest since November 2012.

Platinum's primary use is in catalytic converters to reduce emissions – specifically for diesel vehicles – and Europe's automakers are the top consumers of the metal. Diesel engines represent 50% of the market in Europe. Palladium finds more application in gasoline engines and is therefore more exposed to the Chinese and US markets.