Rhodium prices resumed their decline this week, falling nearly $20 per day according to some sources, as speculative investors began liquidating their long positions ahead of the year's end.
The Platts New York Dealer rhodium price range dropped to $880-935/oz from $900-970/oz last week. Several trade sources cited small amounts of selling by investors as the reason for the decline.
"It's been falling at least $20 every day; it's a little scary," one PGM dealer/broker in the Northeast said. "It's been trading between $840 and $900."
The dealer merchant said rhodium's decline began nearly three months ago.
"This week, there's just no demand, especially from Asia. We've seen no interest from there," the dealer said. "And when we see no demand, people are getting worried about their long positions and selling out."
Another factor weighing on prices is continued selling by scrap processors who recycle rhodium from spent catalytic converters.
"No one is buying and the scrappers keep selling," an investment bank trader said.
"The scrap guys are selling as low as $830, and you can probably buy on the Comdaq at $880," the trader said, referring to the private electronic trading platform operated by UK-based Comdaq Metals.
But some sources said the lower prices had caused some would-be sellers to pull back and wait for a possible rally.
"There's a shortage of sellers down here," a second PGM refiner said. "But how long it stays here is anyone's guess."
The refiner noted that only small amounts of rhodium were offered December 5 at $880-900/oz, a fact noted by other sources. A third PGM refiner agreed that rhodium had been sold at those levels, "but not any real volume. It was just people playing with the numbers."
A large PGM scrap recycler felt rhodium had changed hands early in the week at the $860-870/oz level, but felt offers had risen to around $890-900 by Thursday.
"Still, I don't know if any traded at $900 this week," he said, putting the range at $860-890/oz.
