Commodities generally slipped as concerns grew over prolonged lockdowns in Shanghai and possible interest rate hikes by the Federal Reserve that would hurt global growth and demand.
The metal, used in vehicle exhaust to cut emissions, has fallen nearly 40% since hitting an all-time high in early March on concern that the war in Ukraine could cut supply from key producer Russia.
“A lot of the angst in palladium is related to potential problems with the Chinese economy,” said Bart Melek, head of commodity strategies at TD Securities.
China drags industrial metals
Industrial metal prices fell sharply on Monday on concerns about demand from China, the biggest consumer.
Benchmark aluminum on the London Metal Exchange (LME) hit a low not seen since February 4 at $3,061 a tonne, while copper hit its lowest level since February 9 at $9,756.50.
“In the metals markets, what we’re getting from China is that it’s been really difficult to do business for some time, given all the logistical constraints as a result of the lockdowns,” CRU analyst Eoin Dinsmore said.
Weaker industrial production and fixed asset investment in China than in the first two months of the year have fueled concerns about demand for metals in the country.
Copper fell 3.3% to $9,775 a tonne, aluminum fell 4.8% to $3,088, zinc lost 5.7% to $4,181, lead fell 2.8% to $2,322, tin fell 5.6% to $39,810 and nickel fell. 1.5% to $32,625.