Rhodium will probably be upgraded to primary metal status as a result of this year’s surge in the rhodium price. At least two new mines in South Africa will probably concentrate on rhodium rather than platinum production, according to Charles Cunningham of A-1 Specialized Services, who spoke at a platinum conference held in New York recently. Rhodium is normally mined as a byproduct of platinum.
The platinum group metal, used mainly in the manufacture of catalytic converters for automobiles, soared from a January rate of US$1,600 per oz. this year to its current price of more than US$5,000 as demand outstripped supply.
According to a report in Metals Bulletin, a London-based publication, Cunningham said demand will continue to exceed supply, keeping the price buoyant. He predicts a rhodium price of $8,000 per oz. by 1995. But another speaker, Jeffrey Christian of CPM Group, refuted Cunningham’s predictions, saying that as the number of South African and other producers increases and as Soviet exports rise, supply will begin to meet demand.
Worldwide demand for rhodium has risen dramatically in the last few years as a result of its application in auto catalysts. Predictions are that the Clean Air Act, about to be introduced in the U.S., could double the amount of rhodium used in the auto industry.
Be the first to comment on "Status of rhodium likely to increase"