SGQ in 2020, page-240

Yes Rhodium is an essential mineral for many industrial processes but it is a very illiquid market with no paper contracts. Only 30 tonnes a year is produced. The point I make, as in previous posts, is that supply fundamentals will always override paper markets when conditions are right.

Battery manufacturers are experiencing supply issues now when the price of Ni is arguably below value but this will change in the near term. Incredible to think that one steel manufacturer in Tsingshan can take 90k + in such a short space in time. Asia is doing it utmost to ensure supply while prices are low and this will continue to be the case. The action in Pd was mainly asian buying which has had the effect of getting positions reduced on the exchanges to the point where no one can position to control the market.

Look at the Pd limits compared to gold




Higher prices is the only way to solve supply issues. They need to get metal into the market by supporting prices that will give confidence for companies to make the required investment otherwise they will be crimping their own business. Simple!