[SMM Analysis] Spot Market Analysis of Platinum Group Compounds

This week, China's platinum group metals (PGMs) and compounds market overall followed the strengthening of raw material metal prices, exhibiting an operational pattern characterized by "slight correction in raw materials and rigid cost transmission for compounds." Ruthenium-based compounds fluctuated at highs, platinum-based compounds were slightly raised under raw material cost support, palladium-based compounds performed relatively mediocre due to weak downstream automotive industry demand, while rhodium and iridium compounds continued to stay high and firm. Overall, the current PGM compounds market showed notable divergence in supply-demand structure. The tight supply pattern on the raw material side remained unchanged, cost side provided strong price support, and downstream demand presented a landscape of weakness in traditional sectors alongside sustained high growth in emerging applications.

Platinum-Based Compounds (Chloroplatinic Acid) Market Analysis

Among platinum-based compounds, chloroplatinic acid, as the mainstream product, saw prices rise in tandem with spot platinum prices. The price center of industrial-grade chloroplatinic acid shifted slightly upward, while high-purity electronic-grade and catalyst-grade products maintained relatively higher premium levels. Demand structure side, fuel cell catalysts are expected to become the primary driver boosting platinum-based compound demand. With the implementation of hydrogen energy subsidy policies under the 15th Five-Year Plan, demand for hydrogen fuel cell vehicles is expected to be stimulated, correspondingly driving demand for platinum-based catalysts.

Palladium-Based Compounds (Palladium Chloride) Market Analysis

Affected by raw material prices, palladium-based compound prices recovered somewhat this week. However, from a supply and demand perspective, palladium fundamentals remained weak, with sustained pressure on demand in the downstream automotive exhaust catalyst sector, dragging down overall palladium compound consumption. Nevertheless, palladium compound demand maintained certain resilience in areas such as electronic electroplating, PCB, and pharmaceutical intermediates, providing bottom support for prices.

Ruthenium-Based Compounds (Ruthenium Trichloride) Market Analysis

Affected by raw materials, ruthenium trichloride prices stayed high. The current round of ruthenium-based strength was primarily driven by the surge in metallic ruthenium, with cost side pressure fully transmitted to the compound end. Demand side showed explosive growth. With the R&D and application promotion of platinum-ruthenium-carbon catalysts, demand expanded in applications such as methanol fuel cell anodes and anti-poisoning electrodes. Supply side, incremental ruthenium supply remained limited, spot cargo in the market was tight, and some high-purity grades even saw hold-back-from-selling sentiment, making prices more likely to rise than fall.

Rhodium and Iridium Compounds Market

Rhodium and iridium compounds maintained high and firm operations this week. Rhodium trichloride prices remained strong, supported by rigid demand from automotive catalysts, while demand in high-end chemical catalysis remained stable, and tight mine output on the supply side continued to provide price support. Chloroiridic acid, as the mainstream precursor for iridium-based catalysts, fluctuated at highs driven by demand boost from PEM electrolysis cells and other applications.

Market Outlook

In the short term, PGM compound prices are still expected to be dominated by raw material metal trends. Platinum-based compounds, supported by the supply-demand gap and hydrogen energy demand, are expected to maintain a steady-to-rising trend.