Platinum and Palladium Stayed in the Doldrums This Week; the Spot Market Cooled and Faced Severe Involution [SMM Platinum and Palladium Weekly Review]

Rhodium Prices Drop 10% in 10 Days as Market Shifts from Shortage to Surplus Amid Slowing Demand

SMM May 28: Rhodium prices have dropped sharply recently, falling from 2,490 yuan/gram to 2,235 yuan/gram over the past 10 days. Market participants indicate that the main reason for rhodium's recent decline is a shift in market expectations from supply shortage to a slight surplus. The previous logic of tight supply driving high prices has changed due to slowing short-term demand and increased supply. Recent reports suggest that first-half production of internal combustion engine vehicles may decline, while some institutions' industry reports forecast that total rhodium demand in 2026 will fall by approximately 6%. As a result, the changes in supply and demand fundamentals, coupled with these market reports, have directly influenced market participants' expectations.