Palladium ETF faces decline amid EV demand threat and supply surplus forecast for 2027.

The abrdn Physical Palladium Shares ETF is expected to underperform due to structural challenges from the rise of electric vehicles, which reduce demand for palladium in autocatalytic converters. The ETF has dropped about 36% year-to-date and nearly 50% over five years, reflecting both cyclical and structural pressures. Supply factors, particularly in South Africa, may stabilize, but a supply surplus is forecasted for 2027. Given persistent demand risks and limited supply support, a bullish outlook is not advised at this time.

Following concerns about palladium's demand due to the rise of electric vehicles, PALL trades at USD 18.20 on Pluang as of Oct 29, 2026 11:41 WIB, down 2.88% for the day. The ETF holds a market cap of $531.00M and investors typically hold it for 36 days. Despite the challenges noted, Pluang order activity shows a full 100% buy interest at this time.