Three of the most traded metals in the precious metals market are used in the manufacture of platinum, palladium and rhodium catalysts. It is seen as the ‘brightest’ metals of this century due to the rising automobile and increasing industrial demands.
Platinum is among the most expensive and precious metals in the world due to its chemical properties and rarity and it is the most used metal among the precious metal elements. It has an expanding area of use from jewelry to health, from automotive to chemical industry. Platinum reserves are found in the United States (USA), Russia, Brazil, Colombia, Canada, and Mexico, especially in South Africa. With its pewter white or silver or steel gray metallic color, it is very often used in jewelry and is more valuable metal than gold. Price rise is basically the balance of supply and demand. If the demand for platinum increases or if platinum production decreases, the value of platinum increases. As the production in the electronics sector increases, the consumption of platinum in the industry increases accordingly, which increases the value of platinum.
Palladium is used extensively in automotive, electronics, jewelry, medicine, and chemical applications. This metal comes largely from mines in the United States, Russia, South Africa-Zimbabwe, and Canada. Compared to gold, palladium is 30 times rarer metal. Palladium prices have been increasing steadily in recent years. From now on, palladium is predicted to be in a stronger bullish wave. Also, according to economists, the direction of palladium for the next 5 years seems to be up.
Rhodium is one of the world’s most expensive metals in the platinum group. The rate of reflection and brightness is very high. The most important uses of rhodium are in alloys, automotive and jewelry industry. Because rhodium is highly shiny and resistant to staining, it is used as a finishing layer for jewelry, projectors, and mirrors. The most important natural resources of rhodium are found in South Africa, North America, and the Ural Mountains. The largest rhodium exporter is South Africa and Russia.
Why are the prices of PGM group metals rising?
The main reason for the price increase of a product is that the supply cannot respond to the increasing demand. As governments, especially China, tighten up regulations to reduce vehicle pollution, automakers have to increase the amount of platinum, palladium, and rhodium they use in catalytic converter manufacturing.
The inability of primary sources to adequately meet the growing demand also drives prices up. In this case, the importance of recycling these metals increases. Recycling facilities of catalytic converters, where PGM group is used, is one of the most popular investments of the last period. These facilities pay off in a very short time. Especially the systems designed by Proses Makina Company have both high efficiency and price advantage.