Rhodium Holds at $8,800 as South African Supply Constraints Persist

Rhodium held near $8,800/oz in late May, well above 2025 levels despite a 12% monthly decline, as the market prices severe supply constraints from South Africa. The metal rallied ~50% Dec-Mar during acute tightness before easing as OEMs moderated procurement.

Rhodium supply is structurally constrained as a byproduct of PGM mining in South Africa's UG2 reef. Global annual output is only 25-30 tonnes. Cost inflation, aging infrastructure, power outages, and labor disruptions create persistent supply risks.

Tighter emissions standards in China, India, and Europe continue requiring high rhodium loadings for NOx reduction. Hybrids at 20% of global sales require more PGM per vehicle. Supply will not respond to higher prices - any demand recovery could rapidly tighten the market.