Raging Rhodium: Platinum group metal rockets to record highs of more than $20,000 an ounce

Rhodium has roared into 2021 like a lion on steroids.

The price of the platinum group metal (PGM), a crucial catalyst to cap emissions generated by petrol engines, shot to record highs above $20,000 an ounce on Wednesday, extending a 2020 rally with no end in sight. 

Emissions standards are tightening and supplies are falling woefully short of anticipated demand, triggering a mad scramble to secure the commodity. Rhodium’s price has gained almost 20% in the past fortnight and an astonishing 3,000% over the past five years. 

Two key factors are behind the latest surge. One is Chinese auto demand, the world’s largest market on this front. It slipped slightly in 2020 but is forecast to rebound this year as Chinese economic growth gathers pace. Also, emissions standards in the Asian Goliath are set to tighten again in 2023.