Emission standards boost rhodium use

The market for rhodium in 2000 was characterized by strong consumer demand and tight physical availability, the combination of which caused the price to rise to just over US$2,000 per lb. at the end of December from US$1,000 per lb. at the beginning of the year. The rise occurred despite record shipments from Russia.

Demand for rhodium in autocatalysts rose in all regions. Additional rhodium was needed to meet tougher emission standards in Europe, Japan and the U.S., while several automakers increased rhodium loadings to help minimize a simultaneous increase in palladium demand. It seems likely that many companies will follow this trend in future years as they try to reduce their dependence on palladium.

In Europe, the introduction of stringent emissions standards in January 2000 resulted in heavier average loadings of rhodium in autocatalysts. Further increases can be expected as more and more vehicles are built to meet the legislation guidelines that take effect in January 2005. In Germany, the largest car market in Europe, the government is already meeting tighter regulations.

Japan also saw the introduction of more stringent emissions regulations in 2000, though the new standards were not enforced until October. Many automakers chose to fit catalyst systems capable of meeting the new limits ahead of schedule, and this helped boost demand for rhodium.

Some Japanese auto companies may have added to their stocks of rhodium last year in the expectation of a higher use of the metal in the future.

Imports of rhodium by the U.S. in January 2000 rose dramatically, with no less than 161,000 oz. imported from Russia.

The amount of rhodium recovered from the processing of scrapped autocatalysts rose by 20% to 78,000 oz.

— The preceding is from Platinum 2001, published by London-based Johnson Matthey.