Rhodium prices have clawed back their recent losses, now back in line with their early-March record high of $29,200/troy ounce (ozt), as robust underlying fundamentals returned to the foreground after a flurry of selling as market participants exited positions.
Rhodium is once again nearing the $30,000/ozt mark, according to UK speciality chemicals producer Johnson Matthey — a threshold that attracted speculation earlier this year as some market participants wondered whether buyers would accept such a high price, given that rhodium historically has stood some way below $10,000/ozt. It appears that rhodium prices have yet to hit a resistance level, with global efforts to reduce vehicle emissions continuing to ensure strong demand for the metal in catalysts and limited planned supply growth in the pipeline.
Elsewhere in the platinum group metals complex, platinum prices have stabilised after shedding almost $200/ozt from 16 February-5 March, although they have yet to return to February's multi-year high of $1,325/ozt. Johnson Matthey pegged prices for minimum 99.95pc-grade platinum at $1,218/ozt at the end of last week — almost double where they stood a year ago as Covid-19 stifled demand and prices slumped to $634/ozt. Demand fundamentals remain strong, particularly in the long-term, but many market participants anticipated a slightly downward correction as prices peaked in February, warning that the market had overheated.
Palladium, ruthenium, iridium prices surge
The palladium, ruthenium and iridium price rallies have gained fresh momentum in the past week, with steep upticks registered for all three.
Prices for min 99.95pc palladium shot up by almost $380/ozt since 10 March to $2,708/ozt at the end of last week, largely because of Russian producer Nornickel's 16 March announcement that it is cutting its 2021 output guidance for nickel, copper, platinum and palladium by 15-20pc following the flooding of two Siberian mines. The Oktyabrsky and Taimyrsky mines are expected to return to full operations in 3-4 months.
Meanwhile, US ruthenium prices have jumped by $55/ozt to $385/ozt fob US warehouse in just the past week. Iridium has continued its steep ascent since mid-December, now touching the $6,000/ozt mark for the first time on record — up by 241pc from $1,760/ozt on 18 December. Ruthenium and iridium are being bolstered by combinations of tight supply and rising demand, particularly as electronic applications evolve, 5G rollouts progress globally and the hydrogen economy takes shape.
