Rhodium prices broke over the $1,900/oz mark this week on sizable buying from industrial consumers from midweek onward.
The Platts New York Dealer rhodium price range rose to $1,840-$1,915/oz this week from $1,825-$1,865/oz last week, with sizable volumes trading hands, especially during midweek, market sources said.
"The last couple of days, there's been some big buying around, especially yesterday," one PGMs refiner said Thursday, putting this week's range of physical deals at $1,815-$1,945/oz.
The refiner and other sources cited a deal on Wednesday for $1,880/oz. "Today, it was bid and it was bid all day and it's going up."
Base prices posted by major European refiners reflected the strong buying.
UK-based Johnson Matthey closed the week at $1,920/oz, up from $1,860/oz last week. Germany-based Engelhard Materials Services (BASF) ended the week at $1,940/oz, up from $1,865/oz last week.
One European trader said he thought the majority of business was done around $1,900/oz or a little higher, and did not see much business being transacted much higher than that.
A second PGMs refiner also questioned whether sizable volumes were trading hands much above $1,900/oz, and put this week's range at $1,820-$1,910/oz.
"I don't know if someone has an agenda at this point, and I'm not really buying into it yet," he said. "But there does seem to be a little bit of interest, even above the $1,900/oz level."
The refiner noted that sellers often emerge in rhodium when prices break psychological resistance levels like $1,900/oz.
It was unclear whether the consumer buying was based on current needs or fears that prices would soon hit $2,000/oz, a level not seen since July 2011.
One European dealer said, "I think the market will probably strengthen from here; I think $2,000/oz is not too far away now," and put this week's range of deals at $1,870-$1,910/oz.
IRIDIUM BREAKS ABOVE $1,000/OZ
The Platts New York Dealer iridium price also ticked higher this week to $970-$1,015/oz from $960-$1,000/oz.
"We've definitely had some inquiries in the last few days, with people nibbling away; it's definitely consumer demand we're seeing," the first PGMs refiner said.
"We have seen people selling at $1,000/oz, $1,005/oz, $1,010/oz," he added, putting this week's range at $970-$1,015/oz. "So, all the miners are hot right now."
A third PGMs refiner also believed that small amounts of business were being done above $1,000/oz, and put the week's range at $990-$1,015/oz.
Though iridium is mostly used to make high-temperature resistant crucibles, it is also used in medical devices, premium automotive spark plugs and as a chemical catalyst.
