Trading ranges for rhodium narrowed modestly this week on increased activity from investment banks and buying interest from industrial consumers in East Asia, traders and other market participants said Friday.
The Platts New York Dealer rhodium price spread narrowed to $960-990/oz this week from $950-990/oz last week. Some trade sources however, said they saw bids at the $935-940/oz level, though it was unclear if deals were made at that level.
A physical PGM trader in the Northeast said prices moved all week in tandem with gyrating platinum and palladium, but mostly traded around the $965/oz level.
"We saw a lot of investment demand over the week," the trader said. "Sometimes that doesn't factor in [rhodium's movements], but when we have a big movement like we had over the past two days, it tends to follow platinum and palladium."
A refiner/trader that made sales at $990/oz said some sales could have been made at lower levels due to the selloff in platinum and palladium on Wednesday and Thursday.
"But we see pretty steady demand from our Asian office, mostly automotive demand. Customers aren't buying huge quantities, but they're buying a little every day, which is keeping it supported," the trader/refiner said.
"And we have seen some investment demand. I think at this point the funds are thinking that [rhodium is] so low that this might be a time to buy and hold for a couple of years," the trader/refiner added. "They dip in a couple hundred [ounces] here, a couple hundred there."
Bidding on the COMDAQ, a private, electronic trading window operated by UK-based Comdaq Metals, was brisk this week, one PGM scrap recycler said. Many investment funds and banks use the COMDAQ to purchase or sell rhodium.
"There seemed to be some good two-way business around $985," the PGM recycler said. "There have been some good bids keeping it at $980 and above; I've heard it offered at $995, but I think you can pick up some cheaper elsewhere," he added.
