Rhodium Hits Largest Monthly Gain in Five Years on Demand
Bullion.Directory precious metals analysis 27 July, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
Rhodium is already in small supplies because miners do not actively mine for it, while it is gathered when mining for palladium and platinum.
The increase in emission policies, advancements in auto emissions have increased the demand for palladium and rhodium, which is used in catalytic converters.
Car sales, both in the US and throughout Europe, have been strong and further creating demand for emissions cleaning. Since last December, rhodium prices have increased 40 percent.
According to Johnson Matthey PLC, rhodium is set for the largest inventory storage since 2005 and they expect demand to top 60,000 ounces this year, leading into the second consecutive year of inventory deficits.
“Despite strong fundamentals, we do not rule out a short-term reversal in rhodium” said metal producer Heraeus.
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