The rally in rhodium prices that began in late February appears to have stalled, with numerous sellers now offering at $740/oz, according to analysts with US platinum-group metals recycler major A-1 Specialized Services & Supplies.
"There appears to be a steady flow of selling at $740[/oz] and above, which has capped the market for now," A-1 analysts said in a report Monday. "The run-up in rhodium prices which began in late-February appears now to have stalled."
A-1 analysts said physical sales of rhodium over the past week were made in narrow range of $720-$740/oz, though sales heard by Platts ranged from $700/oz to $740/oz.
In any case, the Platts New York Dealer rhodium price has failed to move above the $740-$745/oz since March 24. UK refining major Johnson Matthey has kept its daily North American base price at $740/oz since March 22.
Though German PGM refining major Engelhard Materials Services (BASF) raised its daily base price to $750/oz on April 14, some trade sources last week questioned whether sizeable volumes had been sold at that level.
"They said they raised their base price $10 because of some commercial interest, but I don't really believe it," one US dealer in said, noting that several offers at $740/oz had surfaced last week on the private, electronic Comdaq trading platform, causing the market to settle lower.
But rhodium remains supported by global auto sales, A-1 analysts said. Like sister metals platinum and palladium, rhodium is used in automobile catalytic converters to reduce greenhouse gas emissions.
Chinese auto sales in the first quarter were up 6% compared with the year-ago quarter, while US sales rose 3.4% and European Union sales rose 10%. But Japanese sales fell 6.8% during the first quarter compared with a year ago.
With an estimated 80% of annual rhodium supplies consumed in the manufacture of autocatalysts, primarily for the treatment of nitrogen oxide emissions, "rhodium prices will depend largely on consumer demand in the global auto sector," A-1 analysts said.
