When it comes to prices, PGMs are along for the ride

Mar 19, 2009 | 04:41 AM |

When the rubber hits the road, catalytic converter consumption—and, by extension, platinum group metals use—hinges on the ability of automakers to show that production numbers are rebounding.

The bad news is that auto demand, especially in the developed world, is expected to be down again this year. But once things do improve, platinum group metals use could accelerate quickly as many of the major automakers have been actively destocking precious metals during the past six months.

Automotive catalytic converter manufacturers provide the principal demand for platinum group metals (PGMs) each year, accounting for some 60 percent of available platinum and palladium and as much as 85 percent of rhodium supplies.....