The rhodium market is defined by relatively stable production, growth in recycling and huge automotive demand due to increasingly stricter global emissions regulations.
Source: CPM Group, Johnson Matthey, Capital Sniper Ltd.
- 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 by-product of mining nickel and platinum. Therefore, production of rhodium is somewhat 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 moved from a surplus in 2015 to a deficit in 2019 due to decline in mine supply and increasing demand.
- High supply/demand tension expected over the next 15 years.
- The BRD establishes the first ever direct trader market for rhodium.
Source: Allied Research
Source: CPM, Johnson Matthey, Capital Sniper
- 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 trader demand from TM2 could contribute to driving prices higher.