Palladium and rhodium prices are spiking to pioneering heights – palladium by 1 500%-plus since 2009 and rhodium by 65% in the first three weeks 2020, on top of last year’s 300%. Analysts calculate that there is still more to come from these wonderful platinum-group metals (PGMs).
Bank of America Securities foresees palladium hitting $3 500/oz and German chemicals company BASF calculates that China alone will add another 40% to rhodium demand this year, which may nudge it towards $10 000/oz. While celebrating this great news, South Africans should also be focusing far more intensely on the headlines being generated by battery electric vehicles, which do not use an ounce of PGMs.
The need to derisk the future of PGMs is compelling and the platinum/rhodium windfall should be used to promote PGM jewellery and to link up constructively with manufacturers of PGM-using hydrogen fuel cells and electrolysers. For its part, the South African government should be taking far more meaningful steps to combat climate change.