Rhodium Poised for Biggest Monthly Advance Since 2009
By GCRU Gold News on Tuesday, July 29 2014, 00:18 - Permalink
Rhodium advanced to the highest price in 16 months and is set for the biggest monthly gain since 2009 as demand from carmakers increased amid restricted supply.
The metal, used in catalytic converters to curb harmful emissions, has rallied 40 percent since reaching a nine-year low of $890 an ounce in December. Prices will be “well supported” as more usage in cars reduces above-ground inventories that total about 1 million ounces, Mitsubishi Corp. International (Europe) Plc wrote in a report earlier this month.
Rhodium, mined alongside platinum and palladium, is set for the biggest annual supply shortage since 2005, according to Johnson Matthey Plc. Output has been curbed by a five-month mine strike that ended in June in South Africa, the largest producer, while European car sales rose for a 10th month in June.