Rhodium Price Trend and Forecast

Rhodium Regional Price Overview

Get the latest insights on price movement and trend analysis of Rhodium in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Rhodium Price Trend for the First Half of 2024

The price trend of rhodium exhibited a noticeable decline, influenced by several market dynamics despite the ongoing structural deficit in its supply. The demand for rhodium, primarily used in vehicle exhaust systems to neutralize emissions, faced challenges as the automotive industry continued to evolve. While there was a resurgence in demand from the auto sector following the resolution of the chip crisis, the increasing market share of battery-powered electric vehicles, which do not require platinum group metals, exerted downward pressure on rhodium prices. This shift in automotive technology highlighted the growing uncertainty surrounding the future demand for rhodium and other PGMs.
 

Rhodium Price Chart

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Additionally, the competition within the platinum group metals saw a shift as the substitution of palladium with platinum began to slow, with both metals approaching similar price levels. This stall in substitution trends further impacted rhodium's market position. On the supply side, lower prices for rhodium and palladium squeezed margins, particularly in South Africa, where many mines were operating at a loss by the end of 2023. This financial strain led miners to implement cost-reduction strategies, constraining supply further.

Despite the supply limitations, the presence of above-ground stocks helped cover the ongoing structural deficit, preventing a more severe price increase. However, trading behaviors that characterized 2023 continued to influence rhodium prices in 2024, contributing to its decline. Market participants remained cautious, with trading patterns and speculative activity playing a significant role in shaping the price trajectory.

In summary, rhodium prices in the first half of 2024 reflected the complex interplay between evolving automotive demand, constrained supply, and market sentiment, ultimately resulting in a downward trend amid persistent structural deficits and cautious trading behaviors.

Analyst Insight

According to Procurement Resource, the price of Rhodium is expected to be hampered by the availability of accessible and cheap alternatives along with the rising global concerns about the supply of the commodity.
 

Rhodium Price Trend for the Second Half of 2023

Rhodium is an expensive and rare earth metal used extensively in a wide range of industrial applications. The automotive industry is its main industrial user, as it uses it in catalytic converters to lower toxic emissions from cars. Further, rhodium also finds applications in the glass industry to produce reflective surfaces, as a catalyst in chemical reactions, and in the manufacturing of electrical contacts.

The rapid decline in rhodium prices during the last two quarters of 2023 has posed significant challenges for platinum miners around the globe. Despite record returns in previous years, the unexpected plummet in rhodium prices caught the industrial sector by surprise in the later months of the year. While there's no immediate risk of mine closures, management around the world started assessing each mine's profitability amidst the price fall.

South Africa, a major supplier of rhodium, has seen production hampered by power cuts during the same phase, which constricted the functioning of global supply chains. Further, weaker demand from China and discounted Russian metal sales contributed significantly to keeping the Rhodium prices trend towards the lower end of the spectrum.

Analyst Insight

According to Procurement Resource, the price of Rhodium is estimated to struggle with scaling down mining operations and limited demand from the downstream, particularly automotive industries, in the forthcoming quarters.
 

Rhodium Price Trend for the First Half of 2023

Rhodium is a precious rare earth metal that is a member of the platinum group of elements. Rhodium is a silvery-white metal with extraordinary qualities, such as excellent corrosion resistance that make it valuable for use in the manufacture of catalytic converters for cars. It also offers extraordinary reflectivity, which is frequently used as a coating for jewelry and mirrors. It is also a superior electrical conductor and has a high melting point.

In India, the price trend of Rhodium markets faced a steep decline in the profit rates as mining activities struggled to keep the market sentiments afloat. The decline in the prices was also contributed by the decrease in demand from China and the effect of Russian metal being sold at a discount in the Asian market. Its main employer is the automotive and magnetics sector, which faced several disruptions and a consistent decline in the number of sales that negatively affected the overall sentiments of the price growth of Rhodium.

Analyst Insight

According to Procurement Resource, the price of Rhodium is expected to suffer from high rates of mining and rising levels of inventories while the demand from the automotive sectors is estimated to fall.

Procurement Resource provides latest prices of Rhodium. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.