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

Published: May 28, 2026 11:01

Save

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

3 hours ago

US June CPI Slows to 3.5%, Pushing Back Fed Rate Hike Expectations

【SMM Precious Metal Express】US June CPI slowed to 3.5% year-on-year, below the 3.8% estimate and the prior 4.2%, while the monthly reading fell 0.4%—the first negative print in six years. Following the data, traders pushed back Fed rate hike expectations to October, with rate futures pricing in approximately 30 basis points of tightening by year-end, down 9 basis points from yesterday.

3 hours ago

Fed Chair Warsh Pledges to End High Inflation, Monitors AI Impacts; Further Hearings and Beige Book Ahead

【SMM Precious Metal Express】Fed Chair Warsh testified before the House, pledging to "end the era of high inflation," noting close monitoring of AI impacts, and stating that any balance sheet adjustments will be adequately previewed. He will attend further hearings today at 22:00, with the Fed's Beige Book set for release at 2:00 tomorrow.

3 hours ago

US-Iran Tensions Escalate: Naval Blockade, New Strikes, and Threats of War

【SMM Precious Metal Express】US-Iran tensions continue to escalate: US military confirmed a naval blockade on Iran resumed at 4:00 am; US forces launched a new round of strikes on Iran at 15:00 ET; Iran stated the US has entered a "formal state of war." Trump said that without a deal, he will strike Iranian power plants next week.

3 hours ago