Rhodium Summary
The rhodium market is defined by fairly stable production, growth in recycling and huge automotive demand due to global emissions regulations.
- Rhodium is a member of the platinum group metals (PGMs) with the symbol Rh and atomic number 45. It is mined in only 4 countries and is nearly 150 times rarer than gold.
- Rhodium is found only as a byproduct of mining nickel and platinum. Therefore, production of rhodium is dependent on the amount of nickel and platinum mining in the world.
- Rhodium is also returned to the market via recycling through an open-loop process involving scrap yards, collectors, processors, smelters and refiners. This represents approximately 30% of yearly supply.
- Market was in deficit from 2014-2017 due to decline in mine supply and increasing demand. Demand is expected to continue increasing.
- High supply/demand tension over the next 15 years expected.
- The BRD establishes the first ever direct investor market for rhodium.
Rhodium Price Moves 1972 – 2019 YTD
Global Supply – Demand Picture as of 2018
- The catalytic converter market will reach $73 billion by 2025.
- Tight emission and fuel efficiency regulations are expected to fuel huge demand for catalytic converters and rhodium.
- The Real Drive Emission (RDE) test, applicable for all vehicles, measures harmful vehicle pollutants such as NOx.
- Rhodium is critical to catalytic converters and the integral ingredient in removing (NOx) from exhaust emissions.
- New legislation in Europe, China and elsewhere means auto emissions are being highly controlled and regulated.
- Automotive demand and new investment demand from the TM2 could contribute to driving prices far higher again.