Our platinum group metals (PGMs)

Enabling cleaner technologies, advanced manufacturing and sustainable development.

Platinum group metals (PGMs) comprise platinum, palladium, rhodium, ruthenium, iridium and osmium, which are critical components in a wide range of industrial, environmental and technological applications. In industry and commerce, the focus is primarily on platinum, palladium and rhodium due to their economic significance, market depth, industrial and consumer applications and supply and demand patterns. Their unique catalytic and conductive properties, together with their superior durability, make them indispensable to modern life and the global transition to low-carbon economies. Ruthenium, iridium and osmium have more specialised, niche applications. PGMs are integral to developments in:

• Decarbonisation: Enabling the production, use and storage of sustainable energy
• Circular economy: High recyclability supports sustainable resource use
• Technological innovation: Powering next-generation electronic, medical and automotive devices.

PGM PRICING

Here's a breakdown of how PGM pricing works:

Global commodity markets

• Platinum and palladium are traded on global commodity exchanges including the New York Mercantile Exchange (NYMEX), the London Metal Exchange (LME) and over-the-counter (OTC) markets. Rhodium, ruthenium and iridium are traded OTC
• Prices are influenced by daily trading activity, futures contracts and spot market transactions.

Supply and demand fundamentals

• Supply: Primarily from South Africa, Russia and Zimbabwe and complemented by the open-loop recycling of previously fabricated metals recovered from e-waste, auto catalysts and jewellery
• Demand: Driven by industrial uses (especially automotive catalytic converters), jewellery, investment demand and emerging technologies (eg, hydrogen fuel cells).

Currency movements

• PGM prices are typically quoted in US dollars, but producers such as Implats earn revenue in South African rand therefore, exchange rate fluctuations (USD/ZAR) significantly impact domestic producer economics.

Speculative and investor activity

• Hedge funds, institutional investors and commodity traders influence prices through speculative positioning
• Macro-economic news flows, shifting market sentiment, interest rate and inflation expectations and geopolitical developments can drive short-term price volatility.

Benchmark pricing and fixings

• The London Platinum and Palladium Market (LPPM) provides daily benchmark prices (known as 'the fix') for platinum and palladium, which serve as reference points for physical transactions.