Rhodium price

About 80–85% of rhodium demand comes from catalytic converters for petrol cars. In three-way catalytic converters, rhodium breaks down nitrogen oxides (NOx). No other metal performs this task with comparable efficiency. Tighter emissions standards, including Euro 6 in the EU, Bharat 6 in India and China 6 in China, directly increase rhodium loadings per vehicle. The price therefore tracks global car-production cycles and the rollout of emissions rules. The rest of demand comes from glassmaking, including crucibles for LCD and specialty glass, platinum coatings for jewellery, and chemical catalysis such as nitric acid production.

Supply is highly concentrated. South Africa accounts for ~80% of annual global mine production of ~30 tonnes, or about ~24 tonnes, mainly from platinum mines in the Bushveld Complex, where rhodium is produced as a by-product of platinum and palladium. Three large producers — Anglo American Platinum, Impala Platinum and Sibanye-Stillwater — dominate supply. Russia supplies a further ~10%, or ~2.5 tonnes. Zimbabwe and Canada account for most of the remainder. Because of this concentration, power cuts linked to South Africa’s Eskom, mining strikes and safety incidents can have an immediate price impact. Short-term replacement supply is limited.

The third factor is the lack of a liquid market and the volatility that follows. Rhodium has no exchange-traded futures market like platinum or palladium. Trading is mostly OTC, using industrial prices from refiners such as Johnson Matthey, BASF and Heraeus. Physical investment products exist, including Heraeus and Argor-Heraeus bars, but bid-offer spreads are typically 20–30%, and the resale market is thin. Limited market depth means rhodium has historically traded between 500 and 29,000 USD/ounce within a single decade. That volatility is unusual even among precious metals.