The price of rhodium reaches an 11-year high

WHEN ANNA SCOTT left her Honda Jazz in a commuters’ car park outside Oxford on January 10th, she had little reason to think that criminals would take an interest in the 12-year-old car. Yet the next afternoon a group of shifty characters were spotted sawing off its catalytic converter. Such incidents have become increasingly frequent across Britain as prices for palladium and rhodium, precious metals contained in the devices, have rocketed. The price of rhodium has leapt by 55% in the first three weeks of January alone, to $9,850. There is no telling when it will fall back to earth.

Surging demand from carmakers is partly to blame. More than four-fifths of global demand for both rhodium and palladium comes from the automotive industry. The metals, together with platinum, help convert toxic gases in a vehicle’s exhaust system (such as carbon monoxide) into less harmful substances before they exit the tailpipe. Facing stricter emissions regulations around the world, carmakers are taking even more of a shine to these metals. Although the price of palladium has reached a record high, that of platinum has stayed relatively stable. That contrast reflects a shift in production towards petrol and hybrid cars, which tend to use greater quantities of palladium in their converters, and away from diesel engines, which use more platinum.