Supply shifts and safe-haven flows reshape PGM volatility

BM Catalysts is advising the European aftermarket to prepare for price instability of rhodium, palladium, and platinum impacting catalytic converter production

Supply shifts and safe-haven flows reshape PGM volatility

BM Catalysts is advising the European aftermarket to prepare for a renewed phase of volatility in global precious metal supply chains, as investor flows into “safe-haven” assets along with persistent mining challenges continue to influence the cost and availability of key materials used in catalytic converters.

The industry’s dependence on platinum group metals (PGMs) rhodium, palladium, and platinum, remains a fundamental vulnerability. These rare materials are critical to emissions control technologies, accounting for as much as 90 percent of the total production cost of a catalytic converter.

Mark Blinston, Commercial Director at BM Catalysts, said: “We’re now operating in a world where precious metals have dual identities, they’re both essential industrial materials and sought-after financial assets. That connection means external pressures, from global markets to investor sentiment, can have a direct effect on the cost base of catalytic converter production.”

Global supply remains tight. Over 70 percent of platinum and rhodium originates from South Africa, where power outages and labour disputes disrupt production, while Russia’s palladium output is constrained by sanctions. This has contributed to price increases in 2025; rhodium is trading at around $8,300 per troy ounce, over 73% higher than 12 months ago. Platinum has seen gains of over 65% in the same period.

The shift of global investment capital into safe-haven assets, such as gold, is extending momentum to other precious metals. Blinston said: “When investors turn to gold for safety, the momentum tends to spill over into other metals. That makes the PGM market more reactive to global economic signals, and the aftermarket needs to understand how those shifts can filter through to component costs.”

Blinston concluded: “Price movements will always attract attention, but our priority is to ensure transparency and stability. We continue to refine our sourcing and buying models to reflect real market conditions while maintaining dependable supply and quality for our customers. The dynamics we’re seeing aren’t short-term spikes, they’re part of a structural shift.”

For the latest automotive aftermarket news, visit bmcats.com.

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