Air Pollution in China, Auto Thieves in America and the Meteoric Rise of Palladium.

In the global economy, everything is connected.

Take the precious metal palladium for example. Around 85% of palladium is used in catalytic converters to help convert toxic pollutants in automobile exhausts to water vapor and less-harmful carbon dioxide. China has been cracking down on vehicle pollution, which means automakers have increased the amount of palladium in their gasoline-powered vehicles. The result? Demand for palladium has outpaced supply and its price has more than tripled since 2016, topping gold as the most valuable of the four precious metals.

The surging price of palladium has fueled a black market in stolen catalytic converters which thieves can saw off from under cars in minutes and sell for hundreds of dollars each. The statistics are eye-opening. According to the New York Times, catalytic converter thefts in St. Louis are up more than eight times, from 50 in 2019 to 420 last year. In Lexington, South Carolina, sheriffs deputies responded to nearly triple the number of catalytic converter thefts between July and December of 2020 than the year earlier period. Similar statistics have been reported in Wichita, Kansas.

The surging price of palladium has fueled a black market in stolen catalytic converters.

Will the increase in gas-powered automobile thefts and soaring palladium prices accelerate the adoption of electric vehicles? Will automakers begin looking at platinum as a less-expensive solution? What does any of this have to do with sputtering targets?

If your manufacturing process relies on precious metal sputtering targets, understanding the gold, silver, platinum and palladium markets is crucial. Unlike less expensive metals such as copper or aluminum, precious metal market forces can have a noticeable impact on your bottom line.

The people at DHF Technical Products have more than a century of experience in the precious metal sputtering target business. We’ve seen ups and downs over the years and have developed strategies to help protect your precious metal investment from fluctuations in the markets. We’re the only manufacturer built from the ground up to specialize in precious metal sputtering targets. Which means we may be the only manufacturer who understands how air pollution in China and auto thefts in Wichita could affect your production line.

But then, attention to detail has always been our thing.