For auto manufacturers contending with a downturn in sales and the cost of designing electric vehicles, rising rhodium and palladium prices represent an added burden. The sector accounts for more than 85% of global rhodium demand, according to Johnson Matthey. "These emissions rules were introduced partway through 2019, and the fact that they will be in force for the whole of 2020 means that metal demand will likely be higher than it was last year." If rhodium prices rise much further, they will exceed 2008's all-time high of $10,100 an ounce. The absence of a futures market makes it difficult for investors to speculate on whether rhodium prices will remain elevated, or experience a repeat plunge.

Source: Bangkok Post January 24, 2020 19:41 UTC