Rhodium price plunges to 8-month low

Precious metal drops 50% since June

by Tom Stundza -- Purchasing, 8/20/2008 1:14:00 PM

The daily price of rhodium dropped to $4,200/ounce today, according to PlatinumToday.com, pushing the month-to-date average toward $6,900. That’s the lowest level in eight months, as demand for the precious metal has weakened. Rhodium is used to form high-temperature alloys with platinum and is plated on other metals to produce a durable corrosion-resistant coating.

The metal sold for a record high of $10,050/oz in mid-June, according to a review of the daily prices by the Platt’s Metals Daily subscription newsletter. Platts says “rhodium is being battered mainly because of the economic slowdown” and quotes trade sources as saying there have been more sellers than buyers lately.