Nov 10 Reuters Palladium prices have tumbled to fiveyear lows below 1,000 an ounce this week, hastening a retreat triggered by expectations of surpluses due to the rapid spread of electric vehicles and automakers choosing cheaper platinum for their autocatalysts.

Prices of the metal, used by automakers in engine exhausts to reduce emissions, have slumped 70 from alltime highs of 3,440.76 hit after Russia invaded Ukraine.

Spot palladium was last down 4.3 to 948.93 per ounce. Down 45 so far this year, palladium is on course for its worst year of losses since 2008, when the financial crash hit demand.

Top producer Russia39;s Nornickel expects the palladium market to swing to a surplus of 300,000 ounces in 2024 from a 200,000ounce deficit in 2023 due to supplies, boosted by recycling, outpacing demand.

Prices look set to collapse further below 1,000oz with little support in a market driven lower by worsening demand, said SP angel analyst John Meyer.

Demand for palladium has also come under pressure from the drive to cut carbon emissions from cars with internal combustion engines ICE and the shift to batterypowered electric vehicles.

If…electric vehicle sales increase as a share of total vehicle sales from 14 in 2022 to 18 this year and more than 20 next year then this spells troubles for ICE vehicles and palladium demand, said Marex analyst Edward Meir.

Electric car sales globally are expected to surge 35 this year to 14 million units, according to the…