- Write by:
-
Friday, August 28, 2020 - 3:17:19 PM
-
756 Visit
-
Print
Mining News Pro - The price of rhodium has been on a stomach-churning ride this year, rocketing from $6,050 an ounce at the start 2020 to a record high of $13,800 an ounce by March 10, only to plummet to $7,800 an ounce before the end of that month as covid-19 spread around the world.
Like its sister metals palladium and platinum, rhodium’s main application is to clean vehicle emissions and the price quoted by Johnson Matthey, the world’s number one manufacturer of autocatalysts, showed the metal has clawed back much of its covid-19 losses to trade at $12,200 an ounce.
SIGN UP FOR THE PRECIOUS METALS DIGEST
This may not be the end of recovery, says BMO Capital Markets, citing a likely 20% fall in mined output due to disruptions in South Africa, which is responsible for roughly 80% of global production.
The fall in ounces leaving mine gates has forced producers to enter the open market as buyers to meet contracted volumes, says BMO:
The recovery in auto sales is boosting demand, particularly given the lack of alternatives in catalyst chemistry given rhodium’s role in reducing NOx (nitrogen oxide) emissions.
South African PGM producers extract a mix of metals comprising roughly 60% platinum, 30% palladium and 10% rhodium.
Rhodium is also alloyed with platinum to make reinforcement fibre for the high-tech glass on consumer electronics, and used as a catalyst to make certain chemicals.
Due to rarity, the small size of the market (all of which is over the counter) and concentrated supply, prices are typically volatile.
Rhodium had a stunning run in 2019, rewarding investors with steady gains ending in 150% in annual returns.
But 2020 trading more resembles 2008, when rhodium touched $10,025 an ounce just before the global financial crisis hit – the metal would drop 90% before the end of that tumultuous year.
Short Link:
https://www.miningnews.ir/En/News/591422
A takeover of Anglo American Plc would need to be pitched at more than £30 ($37.6) per share, a higher price than BHP ...
BHP Group can’t cherry pick Anglo American assets without paying a hefty premium, Anglo investors told Reuters, ...
BHP Group Ltd.’s proposal for Anglo American Plc to spin off platinum and iron ore units before a takeover would likely ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
Impala Platinum could cut 3,900 jobs as it restructures its South African operations due to lower metal prices, the ...
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
No comments have been posted yet ...