London/Moscow — Palladium’s premium to platinum has jumped to a record, building on its ranking as the best-performing metal of 2018. Shortages of the metal used in automotive catalysts for petrol-fueled vehicles sent its price to yet another all-time high, widening the price difference with rival platinum to more than $500/oz on Tuesday. Most analysts don’t see supply relief for palladium anytime soon.

Both metals are used in catalytic converters to reduce vehicle emissions. Platinum, the more expensive of the two for most of this century, has seen usage decline from its key consumers, diesel-powered car makers. Demand slid as consumers turned away from diesel vehicles in the wake of Volkswagen’s (VW) emissions cheating scandal. Platinum is now trading near a 10-year low, at about $821.35/oz, while palladium is near its highest, at $1,325.13/oz.

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