Iridium and ruthenium prices drifted lower this week on lack of industrial interest and excess supply among traders and consumers.
The Platts New York Dealer price range for iridium fell to $725-800/oz this week from $775-850/oz last week, while ruthenium prices -- which have shown signs of weakening in recent weeks -- finally slipped to $65-75/oz from $70-80/oz.
Iridium is used to make high-temperature crucibles that are used to grow sapphire crystals for the electronic industry. The crystals are used to make light-emitting diodes for touchscreens and flat panel displays.
Ruthenium is used to make plating for electrical contacts, microchip films and hard-disk sensors. But with the advent of 'cloud' computing, the computer industry is using less ruthenium, according to trade sources.
"People are saying [$725-800], but if someone wants to sell me at that level, I'm not there," one PGM refiner said.
In addition to weak industrial demand and limited applications, the market is long on ruthenium, one investment bank trader said. "I think the market is a little bit long, and someone is just trying to see where [support] levels are," he said.
"No one is selling anything of merit; it's just being offered lower," the investment bank trader added. "If someone offers a couple hundred ounces lower, there's really no incentive to pay and keep it higher. People have hundreds of ounces of ruthenium. If someone came in and really want to buy, those hundreds of ounces wouldn't add up to much," he said.
Weak demand is even more a factor in the iridium market than ruthenium, sources said. "I certainly wouldn't pay over $750 for it," a second PGM refiner said.
A physical trader of PGMs agreed, saying that industrial interest is rapidly "drying up" and that prices were poised to move lower. "I would think it could go as low as $500; there might be some support there."
Despite the downward trend, iridium prices are still relatively high, a third PGM refiner said, noting that the market was down only by about $250 from its all-time highs in 2011 and early 2012, when demand from crucible manufacturers increased.
"A lot of people bought metal in the last year or two and now everyone is just sitting on it," the refiner said. "People are now trying to lighten up, and there's just no demand for it. I think iridium is going to keep coming down."
