Aftermarket told to ‘brace’ for soar in precious metal prices
The aftermarket is being urged to prepare for renewed cost pressure as raw material prices rise sharply once more.
BM Catalysts, a leading manufacturer of catalytic converters, DPFs and front pipes, warns that ongoing volatility across all three platinum group metals (PGMs) – rhodium, palladium, and platinum – is driving up the cost of production, which is expected to necessitate pricing adjustments across the company’s catalytic converter range in the coming months.
While rhodium remains the most expensive of the three, recently trading at over £18,000 per troy ounce (more than 10 times the price of gold), both palladium and platinum have also seen significant price increases in 2025.
Palladium has climbed over 15 per cent year-to-date, and platinum has seen its value rise by more than 10 per cent, driven by tightening global supply and surging demand linked to more stringent emissions standards worldwide.
All three metals are critical to the operation of catalytic converters, which use combinations of these elements to reduce harmful pollutants from vehicle exhaust emissions.
“The aftermarket cannot ignore that PGMs – especially rhodium, but also palladium and platinum – make up to 90 per cent of the total production cost of a catalytic converter,” said BM Catalysts. “Pricing is therefore directly tied to the fluctuating value of these essential raw materials.”
Demand for catalytic converters is expected to remain strong, yet supply of PGMs – especially rhodium and platinum – continues to be restricted. More than 80 per cent of the world’s rhodium supply originates in South Africa, where production is regularly disrupted by power shortages, labour unrest and ongoing political instability.
With global automakers still relying on these metals to meet emissions standards, the current pressures show no sign of easing in 2026.
As PGM prices spike, so too does criminal activity. BM Catalysts says the UK is again seeing a surge in catalytic converter thefts, particularly from hybrid vehicles, which tend to contain higher concentrations of PGMs and are more accessible. Insurers and police forces are reporting rising claim levels and damage incidents.
BM Catalysts advises workshops, fleets and independent garages to remain vigilant and proactive. “Theft prevention is a critical issue when metals are at a premium,” the company added.
Despite these pressures, BM Catalysts says it is continuing to invest in smarter sourcing, leaner stock planning, and flexible procurement strategies to help minimise the cost impact on customers. The company has adapted its buying approach to remain responsive to market changes and maintain its commitment to fast delivery, consistent quality and long-term reliability.
“Unlike the speculative price bubble of 2008, today’s pricing is underpinned by structural demand, not just market sentiment,” BM Catalysts noted. “We anticipate this environment of elevated pricing to remain for the foreseeable future – and while short-term corrections are always possible, sustained cost pressure is now the new normal.”
Importantly, the company has pledged that any price increases will be market-based, justified and transparent – reflecting real cost inputs, not margin enhancement.
BM Catalysts is calling on distributors, motor factors and garages to communicate openly with their customers about the drivers behind potential price changes. “These are not supplier-led increases – they are part of a global commodities shift affecting every emissions product manufacturer,” the company explained.
“With PGMs continuing to dominate the cost of production, the aftermarket must plan accordingly. That means focusing less on up-front price and more on total product value – quality, reliability, warranty support and availability – particularly in the emissions control sector, where failure can cost far more in the long term,” it concluded.