China, which does not have its own production of palladium, suddenly began to export it against the backdrop of anti-Russian sanctions. According to the country’s customs, in January-May, China sent 5.2 thousand troy ounces of this metal to Italy, Canada and Hong Kong, while in 2021 exports were only 55 troy ounces.
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Probably we are talking about metal of Russian origin, which China resells. Russia produces 40 percent of all palladium mined in the world, and South Africa is also a major supplier. At the same time, China is one of the largest buyers: the country accounts for 30 percent of the global consumption of platinum group metals.
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The production and export of Russian palladium was not subject to sanctions, but there are difficulties with transportation. In addition, London Platinum and Palladium Market suspended the status of a reliable supplier for two Russian refineries.
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The metal exported by China is most likely of non-Chinese origin, but it is not entirely correct to call it Russian, said Sergey Grishunin from the National Rating Agency (NRA). In his opinion, the metal could have been bought in South Africa or Zimbabwe.
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Earlier, the US published a list of 570 Russian goods with increased duties. At the same time, palladium, platinum, titanium, some iron and nickel products were not included in the list. They are strategically important items for Washington and in many cases have no replacement available.
