Rhodium, Iridium, Ruthenium

During 2006–2008, the so-called “small” platinum metals saw massive changes—not only with respect to prices but also the fundamental situation for each.

In 2006, the price for ruthenium surged by ten times to more than $800 per ounce, reflecting new technological developments in the electronics industry. That year, new production capacity had to be set up to support the coating of (computer) hard drives with ruthenium. However, after this remarkable boom ended, the metal’s price lost half of its peak value. As a result of increased use in 2006, existing inventories were substantially depleted. Nevertheless, today’s output of nearly 30 tons of newly mined metal should easily suffice to satisfy current industrial demand.

In percentage terms, price developments for rhodium since 2006 were somewhat less extreme. However, in absolute terms the price increase significantly exceeded that for ruthenium. New emissions regulations in recent years have led to increased demand. An additional factor was the expansion of Asian LCD and plasma display producers, whose manufacturing plants require not just platinum but also rhodium. In this environment, the price of rhodium soared from $1,300 per ounce at the beginning of 2005 to more than $10,000 per ounce in March 2008. During the brief period from the end of January to March, the price rose by about $4,000. Problems with the supply of electricity to mines in South Africa were the catalyst for this dramatic increase. The price of rhodium then fell precipitously at the beginning of the second half of the year as a result of two factors: unexpectedly smooth ongoing production in South Africa later in the year and growing fears regarding current automotive sales.

Overall about 25 tons of the metal are newly mined each year. If made into a cube, the entire amount would fit under a dining room table. However, the metal would be valued in excess of €3 billion.

More than 90% of rhodium comes from the platinum mines of South Africa. The small remainder is distributed among producers in Russia, Zimbabwe and Canada. Recycling plays a subordinate, but not entirely negligible role, accounting for 20% of the annual total available supply of metal.

Iridium is the scarcest platinum metal (with the exception of osmium) and is traded on a very limited basis on the international financial markets. Only about four tons of this metal are produced per year, mostly in South Africa. It is primarily used in the chemical and electronics industries. For almost two years, the price has remained stable at $450 per ounce.