Tight supply and stricter vehicle pollution control standards on the mainland will continue to be key drivers of higher prices of palladium this year and next year, even as the industrial metal’s price reached a 13-year peak, analysts say.

The roll-out of the stringent National IV vehicle emissions standard and Beijing’s order last month to take pollution-prone pre-National III “yellow-label” vehicles nationwide off the road this year will drive up demand for new cars.