Rhodium

The rhodium market is defined by relatively stable production, growth in recycling and huge automotive demand due to increasingly stricter global emissions regulations.

Why rhodium?

  • 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 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 investor market for rhodium.

Total supply outpaced demand from 2015-2018 then moved to a deficit in 2019. Demand pressure is rising again.

Global supply - Demand picture as of 2019

TM2 Market. Global supply - Demand picture as of 2019

Source: CPM, Jhonson Matthey, Capital Sniper

Rhodium price moves 1992-2020 YTD $13800 per ounce

TM2 Market. Rhodium price moves 1992-2020 YTD

Source: Allied Research

  • 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.
  • 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 higher.

Catalytic converter market by region ($Billion)

TM2 Market. Catalytic converter market by region ($Billion)

Source: Allied Research

Automotive catalyst demand for rhodium (Gross tons)

TM2 Market. Automotive catalyst demand for rhodium (Gross tons)

Source: CPM, Jhonson 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.
  • 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 higher.
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Rhodium Overview

Rhodium Overview

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