Fiat Chrysler recall could send palladium price soaring

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Thread: Fiat Chrysler recall could send palladium price soaring

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    Fiat Chrysler recall could send palladium price soaring

    https://www.detroitnews.com/story/bu...ring/39251305/

    Fiat Chrysler Automobiles NV’s recall of 862,520 gasoline-fueled vehicles could spur additional demand for the palladium market that’s already reeling from shortages.

    Replacing the catalytic converters in these vehicles would require an additional 77,000 ounces of palladium, said Miguel Perez-Santalla, sales and marketing manager at refiner Heraeus Metals New York LLC. Prices of the metal that’s used to curb greenhouse gas emissions from vehicles have been climbing to records this year as producers struggle to keep up with demand.

    “This eventually will be a bit of a supply shock,” said Maxwell Gold, director of investment strategy at Aberdeen Standard Investments, which oversees $736 billion. “Overall, this does paint a very positive picture of just growing emission standards globally, particularly in the U.S. for palladium and gasoline engines.”

    Production of the precious metal will trail consumption by 545,000 ounces this year, Citigroup Inc. said in December. Newer and stricter regulations to curb emissions in gasoline vehicles have been forcing automakers to boost their purchases of palladium, fueling the surge in demand even amid a slowdown in car sales in China, Europe and the U.S.


    In the of case of Fiat, the new recall was prompted by a so-called in-use investigation by U.S. Environmental Protection Agency as well as testing done by the car company that was required by agency rules, the regulator said. The EPA routinely tests vehicles driven by consumers to ensure emissions remain within legal limits over time. Repairs required for Fiat vehicles will include replacing components associated with the vehicles’ catalytic converter, a key part of a vehicle’s emissions-control system, the agency said.


    About 70 percent of 110,000 ounces of precious metals needed to replace the catalytic converters will be palladium, Perez-Santalla said. While metal from the recalled cars will likely be recycled, helping ease tight supply, “it’s just going to take a few months for it to come back into the system,” he said.

    “EPA will continue to investigate other FCA vehicles which are potentially non-compliant and may become the subject of future recalls,” the regulator said in its statement.

    Palladium, which is trading at about $1,550 per ounce, could climb to $1,650 if Fiat is able to quickly replace the catalytic converters,

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    Re: Fiat Chrysler recall could send palladium price soaring

    Ok, is my Math off?

    77000 Ounces needed for 862520 Converters. Equals around 11 ounces per vehicle. 11 Ounces at $1550 makes for a $17000 Converter.

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    Re: Fiat Chrysler recall could send palladium price soaring

    Quote Originally Posted by InCogKneeToe View Post
    Ok, is my Math off?

    77000 Ounces needed for 862520 Converters. Equals around 11 ounces per vehicle. 11 Ounces at $1550 makes for a $17000 Converter.
    You flipped it. It is 0.09 ounces/vehicle.

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    Re: Fiat Chrysler recall could send palladium price soaring

    Prices of the metal thatís used to curb greenhouse gas emissions from vehicles have been climbing to records this year as producers struggle to keep up with demand.
    This is one of my pet peeves. There seems to be zero understanding of the difference between greenhouse and smog forming emissions in the world at large. I guess everyone just thinks that itís all ďpollution,Ē and therefore itís all the same stuff.

    For those that donít know, catalytic converters and basically all the emissions equipment that is installed on a vehicle reduce smog forming emissions, stuff like hydrocarbons, oxides of nitrogen, and carbon monoxideóthe sorts of things that make the air brown. Carbon dioxide is actually one of the things that is supposed to come out of the tailpipe. In fact, the catalyst is there to make chemical reactions occur that result in carbon dioxide. Plus if we didnít care about smog forming emissions, we could run our engines lean and get much better MPGs with coresponding lower carbon emissions. The smog would really suck, though.

    The complete lack of understanding of this stuff just boggles my mind. I see it all the time from places that probably should know better. I wonder how many people that are advocating policy changes even get this.

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    Re: Fiat Chrysler recall could send palladium price soaring

    Quote Originally Posted by chris442 View Post
    This is one of my pet peeves. There seems to be zero understanding of the difference between greenhouse and smog forming emissions in the world at large. I guess everyone just thinks that it’s all “pollution,” and therefore it’s all the same stuff.

    For those that don’t know, catalytic converters and basically all the emissions equipment that is installed on a vehicle reduce smog forming emissions, stuff like hydrocarbons, oxides of nitrogen, and carbon monoxide—the sorts of things that make the air brown. Carbon dioxide is actually one of the things that is supposed to come out of the tailpipe. In fact, the catalyst is there to make chemical reactions occur that result in carbon dioxide. Plus if we didn’t care about smog forming emissions, we could run our engines lean and get much better MPGs with coresponding lower carbon emissions. The smog would really suck, though.

    The complete lack of understanding of this stuff just boggles my mind. I see it all the time from places that probably should know better. I wonder how many people that are advocating policy changes even get this.
    Probably 99% DO NOT get it. But they're mostly brainwashed or publicity hounds and virtue-signalers who don't give a hoot about anything--anything--except themselves and advancing or publicizing themselves.

    Carbon dioxide is GOOD. Makes plants grow. It's a miniscule factor that causes mass hysteria, compared to water vapor which actually IS a greenhouse gas, but never mind we can't legislate water vapor. Yet.
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    Re: Fiat Chrysler recall could send palladium price soaring

    Is the palladium in the old converters (being replaced) capable of being recycled into new converters?

    I understand that it is. Rendering the title of this thread as "scare-mongering". But that's the nature of today's journalism.
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