Rhodium Prices Surge to Highest Levels Since 2023 Amid Supply Constraints
Spot rhodium prices have climbed to their highest levels in 20 months, driven by increased buying interest from Anglo American Platinum (Amplats) and tight first-quarter supply from South Africa. Prices have risen 20% this month, breaking above $5,000 per troy ounce before reaching $6,040 on Tuesday—the highest since June 2023—before retreating to $5,640 on Wednesday.
According to sources familiar with the matter, Amplats’ recent bids to purchase or borrow rhodium have unsettled some market participants who had expected prices to decline. While it is common for major miners to engage in both buying and selling on the spot market, Amplats’ activity contributed to market uncertainty.
“Amplats is a regular buyer and seller of PGMs (platinum group metals) in the ordinary course of business and regularly sources metal from the markets to meet customer needs and manage price risk,” a company spokesperson told Reuters.
Rhodium, primarily used in automotive catalytic converters to reduce emissions, has experienced heightened demand alongside concerns over supply disruptions. Flooding in South Africa in late February forced Amplats to temporarily halt operations at its Tumela mine, which accounts for 10% of the company’s output. Despite this, the company has maintained its 2025 production forecast for metal-in-concentrate output.
The latest price surge is particularly notable as other platinum group metals, such as platinum and palladium, have remained relatively stable. Miners have struggled with two years of depressed prices for PGMs, largely due to the anticipated long-term impact of electric vehicles reducing demand for catalytic converters.
South Africa supplies 80% of mined rhodium, with additional production coming from Russia, Canada, and recycled sources. Most miners sell 80-90% of their rhodium under long-term contracts, with the remainder sold on the spot market. However, some mining firms have been unable to meet additional demand due to preexisting contract commitments, particularly from North American automakers and Chinese glass manufacturers.
Wilma Swarts, director of PGMs at consultancy Metals Focus, noted that short-term supply constraints are the primary driver of the recent price spike, though she expects the surge to be temporary. Metals Focus forecasts that the global rhodium market deficit will shrink to 74,000 ounces in 2025, down from 143,000 ounces in 2024, with demand projected to decline by 8% to 1 million ounces while supply drops by 2% to 951,000 ounces.
