Russian PGMs Continue Flowing to Europe via East Asia Despite Direct Import Declines

Russian PGMs Mining

Hong Kong and China Re-export Platinum and Palladium to Europe as Shortages Persist and Prices Stay Depressed

Russian Metal Flows Persist Despite Western Sanctions

Russian-origin platinum group metals (PGMs) continued entering European markets in 2024, despite significant declines in direct exports. Instead, the metal flowed indirectly via Hong Kong and China, both of which ramped up PGM exports after stockpiling Russian volumes in 2023–2024.

The UK, for instance, imported a quarter of Hong Kong’s 857,379 oz of platinum in the first eleven months of 2024—up 500% year-on-year, despite zero direct imports from Russia for two consecutive years.

Re-export Surge Undercuts African Suppliers

As the UK increased platinum imports via Asia, its platinum purchases from South Africa—the world’s largest platinum producer—fell 4% year-on-year. Market participants say rebranded Russian metal, sold at a discount, is undercutting South African supply in Europe.

Meanwhile, Switzerland absorbed most of Hong Kong’s 121,682 oz of palladium exports in 2024, sharply up from prior years. China’s palladium exports also jumped 87%, with half shipped to Switzerland, reinforcing the growing role of East Asia as a trade intermediary.

Global Deficit Grows as Output Shrinks

With supply tight, the EU and UK may continue to rely on these indirect Russian flows. According to the World Platinum Investment Council, platinum and palladium demand will remain robust through 2025, even as global production falls.

Non-Russian producers are scaling back: Sibanye-Stillwater announced job cuts at its U.S. palladium mine, and Impala Platinum may shut its Canadian Lac des Iles site early. Despite tightness, spot prices remain weak, limiting producer incentives to boost output.

Europe's Strategic Dilemma in PGM Supply

Palladium prices have plunged 57% in 2023, followed by another 36% drop in 2024, averaging $998/oz, per Johnson Matthey data. Although sanctions remain in place, Europe’s automotive and industrial sectors have few alternatives for essential PGMs.

Market insiders expect indirect Russian-origin PGM flows into Europe to persist in the medium term, particularly as Asia profits from discounted access. The gap between policy and procurement realities is widening, reinforcing the fragility of Europe’s critical metals strategy.