- Catalytic Converter Recycling Industry Projection 2018
There are a couple factors we like to consider when analyzing the O2 sensor and catalytic converter recycling industries.
- Platinum, Rhodium and Palladium prices. (mainly platinum and palladium)
- Automotive industry trends. (i.e. % of EV vehicles)
Platinum and Palladium Prices : 2018 Projections
“Commerzbank sees limited recovery in platinum prices in 2018. They also expect palladium to fall in the second half of the year. Furthermore, analysts see platinum averaging $925 an ounce in the second quarter and then $975 in the third and fourth quarters. But palladium prices are forecast to average $975 in the second quarter but $950 in the third and fourth quarters.”
The implications of these projections on the O2 sensor and catalytic converter recycling industry is positive. These industries are looking to grow and continue to be lucrative for decades. Even with the rise of EV (electric vehicles).
Will The Rise of Electric Vehicles (EV) Affect The Catalytic Converter Recycling Industry?
A 2017 study by Energy Innovation says we’ll have to wait until 2050 before electric vehicles account for only 65-75% of new light-duty vehicles in the US. But, 90 percent of all new cars in Britain. That’s only if the electric vehicle market can address its current issues. For instance: high battery prices, lack of infrastructure, and vehicle range and battery life.
The EV industry has to grow for a while before it makes a difference on the O2 sensor and catalytic converter recycling industry. Furthermore, the recent popularity of hybrid vehicles ensures demand for catalytic converters and PGM‘s for decades to come.
Even in this rapidly changing world, the O2 sensor and catalytic converter recycling industry will be great for decades to come. Precious metals never go out of style and there are literally over 25 to 35 million vehicles on the road. As a result there is a lot of auto catalyst accumulating to be done in order to obtain: platinum, rhodium and palladium.
Contact PGM Recovery Systems to learn more.