![]() Rhodium is hard, chrome-like in appearance and very resistant to corrosion and thus is preferred by automotive manufacturers. The second reason behind rhodiu’s unprecedented run is that car manufacturers in China and Europe are using more of the rare metal to meet tough environmental norms to maintain clean air. There are only a few exchanges that trade the element, including Johnson Matthey in Hong Kong, according toĪccording to firms dealing with rhodium scrap, producers are behind the supply shortage as they are releasing very little rhodium in the spot market. One of the problems that industrial users and end-users face in sourcing rhodium is that the metal does not have a futures market. Last month, Maruti Suzuki said that increasing commodity prices, especially those of rhodium and palladium that are used in catalysers to meet emission norms, are putting pressure on their costs. Russia’s rhodium supply is subject to political interventions, though.Ĭar manufacturers have begun to complain about the sharp increase in rhodium prices in India. Russia, which produces 65,000-68,000 ounces annually, is the second-largest producer, while the rest of the world makes up less than 70,000 ounces of the output. South Africa is the largest producer of rhodium, making for between 80 per cent and 90 per cent of the total global production. Yet, the deficit more than doubled to 84,000 ounces from 38,000 during the period. The fall in production was mainly on account of South African output dipping to 4,50,000 ounces from 6,24,000 ounces, the British speciality chemicals firm said.ĭemand for rhodium, according to Johnson Matthey, decreased to 6,67,000 ounces last year compared with 7,98,000 ounces in 2019. Last year, rhodium supply dropped to 5,83,000 ounces from 7,60,000 ounces in 2019. More importantly, rhodium has rebounded from a low of losing two-thirds of its gains in March last year, dropping to $5,500 (₹4.01 lakh), before beginning to ascend again. ![]() It moved up from below $3,000 (₹2.18 lakh) in January 2019 to $17,000 (₹12.40 lakh) by December-end 2020, Johnson Matthey said. The demand for rhodium has resulted in a phenomenal price movement of the metal since 2019. Washington Post recently reported that burglars in the US have begun sawing off car’s exhaust pipes in search of rhodium in vehicles after prices ran up to a record. In fact, an ounce of rhodium is as costly as a Toyota Innova or Kia Carnival or Tata Harrier or Honda Civic or many other top-end cars. Today, rhodium is 17 times costlier than gold ($1.708.26 an ounce), 12 times than palladium ($2,355 an ounce) and 25 times than platinum (1,139.46). The deficit was despite a drop in auto catalyst and industrial demand for rhodium. One, the growing demand from the automotive industry to meet the rising stringent emission norms comes during a supply deficit that the market is facing.Īccording to Johnson Matthey PLC, a British multinational speciality chemicals and sustainable technologies company, the deficit in the rhodium market doubled last year as primary supplies contracted. India on track to achieve Paris Agreement goals: Modi Supply deficit doubles Compare Standard and Premium Digital here.Īny changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel.Europe, the US and other nations such as India, China and Japan have all committed to reducing their toxic emissions as part of the Paris agreement and hence have come up with stringent norms to tackle air pollution. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many user’s needs. If you’d like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. If you do nothing, you will be auto-enrolled in our premium digital monthly subscription plan and retain complete access for $69 per month.įor cost savings, you can change your plan at any time online in the “Settings & Account” section. For a full comparison of Standard and Premium Digital, click here.Ĭhange the plan you will roll onto at any time during your trial by visiting the “Settings & Account” section. ![]() Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Standard Digital includes access to a wealth of global news, analysis and expert opinion. During your trial you will have complete digital access to FT.com with everything in both of our Standard Digital and Premium Digital packages.
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