In the first half of 2025, rhodium prices saw a sharp upward trend, driven by a mix of tighter supply, renewed demand, and unexpected market activity. The year began with sluggish momentum, but prices started rising quickly by late February. Production disruptions in South Africa, especially due to flooding at Amplats’ Tumela mine, combined with lower refined inventories, reduced market availability. Meanwhile, Anglo American Platinum (Amplats) was seen actively buying metal, surprising market participants who had expected a price decline.
Strong automotive sales in the U.S. and China supported end-user demand, while spot market activity increased as long-term contracted supply left little extra metal available. North American automakers and Chinese glass manufacturers added to the demand pressure. Seasonal dips in refined metal output from South Africa further tightened the market, contributing to the rapid price climb. Investor sentiment also played a role, with bullish signals from Amplats ahead of its demerger helping lift broader optimism for platinum group metals.