From S&P Global Platts, starting with one we missed:
March 8
Growing 5G infrastructure needs support demand for niche metal iridium, while OPEC+ signals and US rig data are key talking points for oil markets. Plus, the latest UK power capacity auction generates a record price, and Asian aromatic petrochemicals are buoyed by a combination of unusual events, while PVC prices spike on tight supply.
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1. 5G metal iridium could see more upside after all-time high
What's happening? Platinum group metal (PGM) iridium has been on a tear over the past three months, rising nearly three-fold since December 2020. The Platts New York Dealer iridium price rose to $4,800-$5,125/oz for the Feb. 26-March 4 period. On March 5, Johnson Matthey – the largest secondary PGM refiner in the world – said in its iridium base price stood at $5,100/oz, while refiner Engelhard Materials Services (BASF) of Germany quoted $5,500/oz. Market sourcestold Platts the latest rally was caused by supply shortages from South Africa, which accounts for 81% of global iridium mine supply, and PGM producers coming into the market to buy due to contractual commitments. Another key bullish driver has emerged recently: 5G-related demand. Iridium is a critical element in several niche products, including temperature resistant crucibles used to grow lithium tantalate crystals for electronics and telecommunications systems.
What's next? Supply issues in South Africa and robust demand look set to continue in the near-term. Further out, there is a potential use for iridium potentially in the production of green hydrogen via electrolysis, suggesting demand upside in the future....
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