Finance
Russia's Nornickel Sees New Palladium Demand From China’s Fibreglass Sector
Published by Global Banking & Finance Review®
Posted on March 23, 2026
2 min readLast updated: March 23, 2026
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Nornickel sees burgeoning palladium demand from China’s fibreglass sector—potentially up to 0.8 Moz/year—helping offset declining auto demand. Global glass industry demand could reach 2 Moz. Company investing $100 M to drive 1.7 Moz of new annual demand by 2030.
Nornickel Sees New Palladium Demand from China’s Fibreglass Sector
Rising Demand and Market Developments for Palladium
By Anastasia Lyrchikova
China’s Fibreglass Industry as a New Growth Driver
MOSCOW, March 23 (Reuters) - Nornickel <GMKN.MM>, the world's biggest palladium producer, said demand for the metal from China’s fibreglass industry could reach 0.8 million ounces per year over the medium term, helping offset an expected decline in demand from the auto sector.
Russia-based Nornickel, which accounts for about 40% of global palladium output, set up a Palladium Center in 2023 to develop new applications for the metal beyond autocatalysts, which currently use more than 80% of supply.
Industrial Trials and Shift from Platinum
China bought 20,000 ounces of palladium last year to test its use in the glass industry, and successful 300‑day industrial trials in China have prompted the Chinese to begin shifting from platinum to palladium-based solutions, with large‑scale testing set to start in April 2026, Dmitry Izotov, director of the Palladium Center, told Reuters.
The medium‑term demand from the fibreglass sector in China could reach 0.8 million ounces, and total demand from the glass industry globally could reach up to 2 million ounces, he added.
Nornickel’s Investment and Diversification Strategy
Market Development Programme
Nornickel is investing $100 million in a programme to try and generate around 1.7 million troy ounces of new annual demand for palladium by 2030.
Supporting New Industrial Applications
“We needed to launch a large-scale market development programme to support palladium in new industrial applications, because platinum was already fairly diversified, while palladium had always been overwhelmingly tied to autocatalysts,” Izotov said.
Emerging Markets and Future Outlook
Electrochemistry and Other Sectors
The company also sees near‑term demand emerging in electrochemistry to 0.2–0.3 million ounces of palladium potentially used for anodes, including for water treatment.
Market Balance and Price Trends
Nornickel, which produces around 2.7 million ounces of palladium annually, expects the palladium market to remain broadly balanced in 2026 and over the medium term, with slower growth in electric vehicles and a rising share of hybrids.
After jumping 127% in 2025, spot platinum is trading above palladium, although both metals are down 13-14% so far this year to $1,780 and $1,370 an ounce respectively.
(Reporting by Anastasia Lyrchikova; Editing by Susan Fenton)
Key Takeaways
- •China’s fibreglass industry may generate up to 0.8 million ounces of annual palladium demand over the medium term; global glass demand could reach 2 million ounces. (mining.com)
- •Nornickel has established a Palladium Center and is investing $100 million to stimulate new annual demand of about 1.7 million ounces by 2030. (nornickel.com)
- •Palladium demand from autos (over 80% of current use) is expected to decline, making industrial diversification—including fibreglass and electrochemistry—critical. (chinadaily.com.cn)
References
Frequently Asked Questions about Russia's Nornickel sees new palladium demand from China’s fibreglass sector
1How much palladium demand is expected from China’s fibreglass sector?
Nornickel expects China's fibreglass industry to drive demand for up to 0.8 million ounces of palladium per year over the medium term.
2Why is Nornickel focusing on new palladium applications?
Nornickel aims to offset declining demand from the auto sector by developing new industrial uses for palladium, especially in the glass and electrochemistry industries.
3What steps has Nornickel taken to support palladium markets?
Nornickel established a Palladium Center in 2023 and launched a $100 million program to stimulate new industrial demand, targeting 1.7 million additional ounces annually by 2030.
4What is the current global share of Nornickel in palladium production?
Nornickel produces about 40% of the world’s palladium supply, or roughly 2.7 million ounces annually.
5Are there other new uses for palladium besides fibreglass?
Yes, Nornickel also sees emerging demand in electrochemistry, with up to 0.3 million ounces potentially used for anodes such as those in water treatment.
