Last year it was the dental sector in which high palladium prices had their most significant negative impact. Demand was down by 26% to 820,000 oz., the lowest figure in 17 years.
The use of palladium alloys in dental application decreased world-wide, with the sharpest declines occurring in the U.S. and Germany.
In comparison, there was a more modest fall in consumption in Japan. The Japanese market is generally less price-sensitive than other countries, because treatment using the Kinpala alloy, which contains 20% palladium, qualifies for a subsidy under the country’s health insurance scheme.
Elsewhere, the rising palladium price has triggered a rapid shift to alternative products. In Europe, where the use of palladium dental alloys is concentrated in Germany, demand plunged by 44%, as the impact of high dollar prices was exacerbated by a weak euro.
In North America, palladium consumption fell by one-third. Dental laboratories are switching from palladium to high gold and, especially in Europe, base metal alloys; in addition, technical improvements are resulting in greater use of metal-free material, such as porcelain.
— The preceding is from Platinum 2001, published by London-based Johnson Matthey.
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