SOFTER PALLADIUM JEWELLERY DEMAND FORECAST FOR 2010
Gross palladium jewellery demand is set to soften by 145,000 ounces in 2010 to 630,000 ounces, the fall almost entirely due to reduced consumption in China. Recovery of palladium from recycling of old jewellery is set to increase by 15,000 ounces to 85,000 ounces, bringing net palladium jewellery demand to 545,000 ounces, a fall of 23 per cent compared with 2009.

CHINESE PALLADIUM DEMAND TO CONTRACT
Gross demand for palladium jewellery manufacture in China is forecast to fall by 160,000 ounces to 400,000 ounces in 2010. With the exception of a few provinces, availability and promotion of palladium jewellery is sparse and it has struggled to maintain consumer interest. Several manufacturers have withdrawn from palladium jewellery production in 2010 while others are using increased quantities of recycled old jewellery.

EUROPEAN PALLADIUM DEMAND TO INCREASE
Palladium jewellery is anticipated to continue to gain popularity in Europe, particularly in the UK where hallmarking statistics show that it has quickly gained a good foothold in the market. We forecast that demand for palladium for jewellery manufacturing in Europe will strengthen by 20,000 ounces, while remaining steady in the USA and other regions.

RECYCLING OF PALLADIUM JEWELLERY INCREASING
Recycling of palladium from jewellery is forecast to increase by 21% in 2010. Many Chinese retailers are less willing to exchange old pieces of palladium jewellery than they are gold and platinum pieces. Consumers can sell their old palladium jewellery to collection booths, which sell onto local refineries; the increasing metal price is teasing out more of this jewellery. 

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