The real world of PGM pricing

This comprehensive study guides you through the labyrinth of platinum, palladium and rhodium metal flows from mine to market. It is an ‘Enigma code’ revealing the real world of PGM pricing, and was originally undertaken for a major institutional investor in PGMs who is now happy for us to share the study with selected clients. The study contains unrivalled insight with over 300 pages of detailed analysis, commentary and charts. It provides definitive answers to commercial questions which we have all posed, such as:

• Where is the price made and to what extent does this reflect the physical movement of metal?

• Who trades on the London ‘Fix’ (auction) and what is the volume of trade?

• How do the demand-side participants (automotive, jewellery, and industrial) source their metal, and how do they price it?

• How do the supply-side participants (producers and recyclers) sell their metal, and how do they price it?

• How are contracts on futures markets (NYMEX, TOCOM) priced, and to what extent does trade on these markets actually result in the physical movement of metal?

• What is the history of estimated above-ground stocks and how does this look against prices for each of the metals?

• Where do above-ground stocks sit (split by OEM, fabricator, jewellery, industrial, investor etc.), and when these stocks are being drawn down, where are these transactions taking place and how are these trades being priced?

• How can an analysis of the supply-demand balance over the last 10-20 years highlight the drivers of spot price changes for each PGM over time?

• What were the event-driven impacts on price and how did these detach the price from fundamentals? How did PGM prices react to these events compared with other commodities?

• What is the link between purchasing demand and end-use demand and its impact on price?

We trust having joined the dots between metal flows and price-setting you will be better positioned to truly understand price risks and thus strategically respond to these dynamics.

Who should read this report?

• Commodity risk managers from fabricators, car companies, petroleum companies and other end-users, for help with assessing price volatility, price direction, or the economics and security of supply.

• Financiers, pension funds, investors, traders and other financial institutions needing to understand the key upside and downside price influences and trends.

• New business entrants.

Live Q&A with the analysts

• Our PGM Join the Dots market intelligence report is supported by a video call, most often hosted through MS Teams, which is led by  Beresford Clarke, along with our team of expert PGM analysts to highlight the key market aspects and address any further questions you may have.