Generic Hero BannerGeneric Hero Banner
Latest market news

Anglo American says world is short of rhodium

  • Market: Metals
  • 20/02/20

UK-Australian mining firm Anglo American expects demand for rhodium catalysts to remain high as automakers work to reduce emissions, but cautioned against expectations for surging prices.

"An automobile chief executive will not get fired for spending fifty dollars a car extra on PGMs [platinum group metals] but they might get fired for not meeting their emission targets," chief executive Mark Cutifani said today.

Rhodium is used in catalytic converters for gasoline-fuelled cars to reduce toxic nitrogen oxide emissions. Unlike palladium, which is also used in catalytic converters along with platinum, rhodium has no obvious substitutes. Higher vehicle emission standards around the world, including China, and fall-out from the Volkswagen diesel emissions scandal have created a surge in demand for rhodium catalysts, with little flexibility to increase production.

Rhodium prices rose to $12,700/troy ounce (toz) today after breaching the $12,000/toz threshold yesterday — their highest in at least 15 years, based on price quotes from UK specialty chemical producer Johnson Matthey. Prices have risen by 110pc from $6,050/toz at the start of this year.

Cutifani refused to be drawn on whether current high prices are a bubble. But he cautioned against relying on short-term price movements, adding that what can rise quickly can fall twice as quickly.

An important element of the price spike is an unexpected rise in demand for catalysts for gasoline vehicles after the emissions scandal reduced demand for diesel cars and focused attention on meeting emission standards.

The cost of refining PGMs is high and most of the world's rhodium is produced in South Africa by a small number of producers. The company has no immediate plans to increase investment in rhodium production in response to the price spike.

Caroline Messecar


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
31/01/25

Trump tariffs on Canada, Mexico to include oil: Update

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Mexican GDP growth in 4Q lowest since 2021


31/01/25
News
31/01/25

Mexican GDP growth in 4Q lowest since 2021

Mexico City, 31 January (Argus) — Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth. Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year. The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates. This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return. Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component. Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter. Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump tariffs to hit Canada, Mexico, China on 1 Feb


31/01/25
News
31/01/25

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Washington, 31 January (Argus) — President Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, the White House said today. The White House pushed back on reports that the tariffs would be delayed and declined to confirm whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. "Those tariffs will be for public consumption in about 24 hours tomorrow, so you can read them then," the White House said. The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Trump on Thursday acknowledged a debate over the application of tariffs to oil but said he had yet to make a decision on exemptions. The White House dismissed concerns about potential inflationary effects of Trump's tariffs. "Americans who are concerned about increased prices should look at what President Trump did in his first term," it said. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Saudi 2mn t/yr steel mill to be sold


30/01/25
News
30/01/25

Saudi 2mn t/yr steel mill to be sold

London, 30 January (Argus) — A 2mn t/yr long and flat steel production plant in Dammam, Saudi Arabia, is up for sale, US-based global asset management company Gordon Brothers said. The mill, which has not operated for nearly two decades, houses two billet casters, a thin slab caster, a 5-stand 4-high hot strip mill, an induction furnace, an electric arc furnace, a ladle refining furnace, and diesel power generators. The plant was previously operated by Saudi steelmaker Al Tuwairqi. The company in 2006 contracted South Korea's Posco Engineering to supply machinery and equipment to the plant, but the equipment has remained unused since its shipment, coinciding with the global financial crisis in 2008. Al Tuwairqi has a 1.85mn t/yr long steel mill in Makkah, a billet and rebar production site with 1.5mn t/yr capacity in Dammam, and 500,000 t/yr of direct-reduced iron (DRI) capacity. The equipment in Dammam dates from 1994-2008 but could be upgraded if necessary, and the company could potentially commence production soon after, market sources said. Once the mill is operational, it is expected to increase domestic output. Market participants would welcome the additional capacity, given strong current demand bolstered by large-scale construction and infrastructure projects in the region. The addition of flat steel capacity is particularly attractive because the Gulf Co-operation Council region imports most of its flat steel and has few producers. A US steel company is considering purchasing the mill, market participants have suggested, although no official statements have been made. By Elif Eyuboglu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Recent deep-sea and short-sea cfr Turkey scrap deals


30/01/25
News
30/01/25

Recent deep-sea and short-sea cfr Turkey scrap deals

London, 30 January (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 27-Jan 3,000 350 February Marmara Romania Bonus Y 24-Jan 3,000 329 January Marmara Romania HMS 1/2 90:10 N 22-Jan 3,000 325 January Marmara Bulgaria HMS 1/2 90:10 Y Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 29-Jan 30,000 349 (80:20) February Iskenderun USA HMS 1/2 80:20, P&S, shred Y 28-Jan 40,000 340 (80:20) March Izmir UK HMS 1/2 80:20, bonus Y 28-Jan 30,000 342.50 (80:20) February Izmir Scandinavia HMS 1/2 80:20, P&S, bonus Y 28-Jan 30,000 342.50 (80:20) February Izmir USA Shred, bonus Y 22-Jan 18,000 332.50 (80:20) February Iskenderun Cont. Europe HMS 1/2 80:20, shred, bonus N 22-Jan 30,000 345 (90:10) February Iskenderun USA HMS 1/2 90:10, bonus (option) Y Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more