Its price has almost doubled since January 1, from $ 6,000 to $ 11,500 an ounce on Friday, according to the price published twice a day by the chemical group Johnson Matthey. Seven times more than gold.
What is rhodium?
Rhodium is a silvery white metal from the platinoid family, "silver-like in appearance, very hard and very resistant to corrosion", explains John Plassard, market specialist at Mirabaud, to AFP.
"There are no rhodium mines per se", he adds, rhodium being a by-product of the extraction of platinum or nickel.
Regarded as a rare metal, rhodium does not belong to the category of “rare earths”, this set of 17 metals supplied 95% by China and essential to a series of technological products.
What is it used for?
Rhodium "is one of those metals that help transform the automotive sector," says Plassard.
It is mainly used by the automotive industry in the manufacture of exhaust catalysts - or catalytic converters - because it limits the emission of polluting gases, in particular nitrogen oxide (NOx).
Rhodium also finds uses in chemistry and in the composition of jewelry, as certain necklaces or bracelets of the Swarovski jeweler.
Where is it found?
South Africa extracted between 80% and 85% of world production in 2019, according to a report published Wednesday by Johnson Matthey, the rest being shared between Russia and all the other countries of the world.
Total production has amounted to around 26 tonnes per year over the past three years, to which are added between 10 and 13 tonnes of recycled rhodium, according to the same report.
The extraction conditions "are not exempt from certain risks", recalls Mr. Plassard, who points out "the potentially carcinogenic toxicity of this type of metal".
Why is it so expensive?
Its rarity and the dependence of its supply on an extraction zone are among the main factors of the high cost of rhodium.
Strong demand from the automobile industry, driven by anti-pollution measures, in Europe, but also in China, increased last year (+ 14%), generating a market deficit situation.
In addition, "the interest of investors in search of new safe havens has also driven prices up," adds Mr. Plassard.
If the prospects for its price are good for 2020 - Johnson Matthey expects an increase in the supply deficit - some analysts warn about the speculative side and recall the downside of rhodium in 2008, whose price had been abruptly divided by ten between June and November.
Is it the only metal whose price takes off this year?
Metal prices have suffered rather since January 1 because of fears weighing on Chinese demand, the first importer of raw materials being prey to an epidemic of viral pneumonia which constrains its economy and threatens to weigh on its growth.
But some are doing well: palladium has gained almost 25% since the start of the year, also driven by demand from the automotive industry, and to a lesser extent gold, supported by its status of refuge value.
The ounce of palladium traded Friday on the London Metal Exchange around 2435 dollars per ounce, against about 1580 dollar for the ounce of yellow metal.
