Platinum-group metals price hit due to stagnant auto production

The shortage of semiconductors is negatively affecting the price of platinum-group metals as investors brace for a long-lasting hit to car production, according to a Bloomberg news in mining.com
Platinum and its sister metals, palladium and rhodium, that are used in pollution-cutting catalytic converters have all suffered sharp drops in recent weeks as carmakers shutter plants and trim output guidance.
The price slump is a big contrast with the booming performance earlier in the pandemic, which was driven by supply shortages and hopes of a stimulus-led economic recovery.
Rhodium, the most expensive precious metal, has suffered the most as its demand comes almost entirely from the auto sector. Palladium isn’t far behind, having this week dropped through $2,000 an ounce for the first time since July 2020.
Platinum, meanwhile, has shown a less steep drop, partly because of demand from investors and jewelry makers. It is also more commonly used in heavy vehicles whose production hasn’t been as badly affected. It is still fallen more than 15% in the past three months, touching the lowest since last November.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished