Rhodium reaches US$7,000 per oz.

The price of rhodium continued its meteoric rise and recently realized US$7,000 per oz. in New York. South Africa, the Soviet Union and Canada are the three suppliers of rhodium to the world market. A member of the platinum group of metals, rhodium is used mainly in the manufacture of catalytic converters in automobiles.

Buying sprees by Japanese and European consumers are reported to have contributed to the price rise (US$1,600-1,700 per oz. at the beginning of the year). Also, Metals Week, a New York publication, reports producer Rustenburg of South Africa and metals dealer Engelhard have become buyers.

There is speculation that problems at Rustenburg’s new refinery are affecting the company’s delivery of the metal, but according to a company spokesman, the refinery has been operating at design levels.

In Canada, Inco (TSE) and Falconbridge Ltd. mine rhodium (and other platinum group metals) as a byproduct of their nickel- mining operations.