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Zeev Hed

08/10/03 9:23 AM

#139347 RE: carl_p_r2 #139338

Palladium,platinum and rhodium are interchangeable in many catalysts, particularly auto catalysts. The order given (Pd, Pt, Rh) is also the order of refractoriness in these metals and is also the normal "scale of pricing". When a large disparity occurs in these prices and you get an inversion (like right now, Rh being cheaper than Pt), one should expect more inclusion in catalysts and crucibles of the lower cost PGM and redressing the pricing situation, namely proportionately higher demand for Rh will bring back its price above Pt. The same happened about two years ago, when disruption of Pd from Russia caused Pd to go above Pt. The Japanese automakers who had mostly Pd based auto catalysts (which are lower quality than Pt based catalysts), moved gradually back to more Pt. Glass makers that are using Pt/10% Rh crucibles, will move to more refractory Pt/20% Rh and allow for longer life process cycles. With Pd at about 1/4 of Pt prices (rather than the more traditional 1/2) will regain a portion of the catalyst market as well helping redress the normal relationship. At least that is what has happened historically. It is a slow process (last time the buy Pt sell Pd hedge was on for almost 2 years...) because users want to make sure that it is not a
"passing phenomenon" before they change processes and compositions.
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Zeev Hed

07/01/04 10:40 PM

#264751 RE: carl_p_r2 #139338

Looks as if the real "fair" value of Rh vs Pt is finally being reestablished here with Rh around the $900/ounce price and Pt at $777/ounce almost a 20% difference, I think that difference can still go higher and the ratio of Pt to Pd can also decrease a little more.
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Zeev Hed

08/19/04 1:58 AM

#286156 RE: carl_p_r2 #139338

Carl have you looked at the Pt/Rh ratio recently? Rh now at $1255 vs Pt at $855, almost a 50% premium, what it is "supposed" to be (vs last year $686 for Pt and a discount of 30% at $440 for Rh.) Of course, once Rh went to just a minimal premium, I suggested that hedge be closed, but now it is in full bloom. (#msg-1230445).