Aftermarket to face cost increases as precious metal prices rise

BM Catalysts warns of renewed cost pressure on catalytic converters due to soaring platinum group metal prices, urging the aftermarket to prepare for adjustments

Aftermarket to face cost increases as precious metal prices rise

BM Catalysts, the UK’s largest independent manufacturer of Catalytic Converters, DPFs, and Front Pipes, is advising the aftermarket to anticipate increased cost pressure. This comes as raw material prices, particularly for platinum group metals (PGMs) – rhodium, palladium, and platinum – are rising sharply in 2025. These fluctuations are expected to necessitate pricing adjustments across their catalytic converter range.

Rhodium, currently trading at over £18,000 per troy ounce, remains the most expensive PGM. Palladium has increased by over 15% year-to-date, and platinum’s value has risen by more than 10%. This is attributed to tightening global supply and increased demand driven by stricter emissions standards worldwide. BM Catalysts highlights that PGMs constitute up to 90% of a catalytic converter’s production cost, directly linking pricing to their fluctuating value.

Demand for catalytic converters is projected to remain strong, while PGM supply, especially for rhodium and platinum, faces restrictions. Over 80% of the world’s rhodium supply comes from South Africa, where production is frequently disrupted by power shortages and instability. These pressures are not expected to ease in 2026, as global automakers continue to rely on these metals to meet emissions standards.

The surge in PGM prices has also led to an increase in catalytic converter thefts in the UK, particularly from hybrid vehicles, which often contain higher concentrations of these metals and are more accessible. Insurers and police are reporting rising claims and incidents. BM Catalysts advises workshops, fleets, and independent garages to remain vigilant regarding theft prevention.

Despite these challenges, BM Catalysts is investing in smarter sourcing, leaner stock planning, and flexible procurement strategies to minimise the cost impact on customers. The company has adapted its buying approach to respond to market changes and maintain its commitment to fast delivery, consistent quality, and reliability.

BM Catalysts notes that current pricing is driven by structural demand rather than speculative market sentiment, anticipating elevated pricing to continue. Any future price increases will be transparent, reflecting actual cost inputs rather than margin adjustments. The company urges distributors, motor factors, and garages to openly communicate the reasons behind potential price changes to customers, emphasising that these are due to global commodity shifts affecting all emissions product manufacturers.

The aftermarket must plan for these ongoing cost pressures by focusing on total product value—quality, reliability, warranty support, and availability—especially in the emissions control sector, where product failure can incur greater long-term costs.

To stay updated on PGM pricing trends and other aftermarket developments, visit BM Catalysts by clicking here.

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