Palladium is providing an alternative to platinum for automakers looking to reduce costs in developing automotive catalysts.

While platinum is still used in the diesel sector, palladium is becoming increasingly used in petrol catalysts to reduce costs.

"Automakers have replaced most platinum with palladium," said David Jollie, Johnson Matthey precious metals market analyst.

Figures from Johnson Matthey indicate that the demand for palladium autocatalysts increased by ten per cent during 2007.

Mr Jollie told Mining Weekly that rhodium is now being carefully used in standard automotive catalysts because of its record price.

While it still remains an important metal in controlling nitrogen oxide emissions, automakers can only reduce their rhodium usage by a certain amount.

Mr Jollie said that the price of rhodium had dropped by $1,000 during July because of a slowdown in the automotive market in the US.

The price was also influenced by the increase in rhodium production in South African mines and revealed that the market was more vulnerable to daily price movement than platinum.

Source:

Platinum price hikes birth string of junior miners, 22/08/08

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