Rhodium, the past year's worst-performing metal, is poised to rebound as record car sales curb a supply glut at a time when producers are idling unprofitable mines and postponing spending on new projects.
The surplus will decline 62% to 52,900 ounces this year, the least since 2008, as production contracts, Morgan Stanley estimates. The car industry, which uses rhodium-coated catalytic converters, will consume the most in five years. Prices that slumped 38% in the past 12 months will rally 62% to $2,000/oz by the end of 2013, the median of eight analyst estimates compiled by Bloomberg shows.
The metal, usually found alongside platinum and palladium, fell 88% since reaching a record $10,100 in 2008 as carmakers cut the amount used in each auto-catalyst and increased recycling to reduce costs. The slump is curbing revenue for mining companies from Johannesburg-based Anglo American Platinum Ltd. (AMS) to Impala Platinum (IMP) Holdings Ltd. and Aquarius Platinum Ltd. (AQP) said June 21 it was suspending the Everest mine in South Africa because it is no longer profitable. . .View Full Article