Ruthenium Prices Surge to Record High of $1,750/oz

Ruthenium, a platinum-group metal, achieved an unprecedented price of approximately $1,750 per ounce on March 13, 2026. This significant increase is primarily attributed to escalating demand from the artificial intelligence (AI) sector and ongoing limitations in its global supply chain.

This new peak represents a substantial rise from its price of $560 per ounce recorded just one year prior. The data, compiled by LSEG, references benchmark prices established by Johnson Matthey, a leading company in precious metals and sustainable technologies.

Driving Factors Behind Price Escalation

The surge in ruthenium's value is largely propelled by its essential role in advanced electronics. The metal is a critical component in semiconductors and hard disk drives, which are fundamental to the infrastructure supporting AI-driven data storage and cloud computing. The rapid expansion of these technologies has created a robust demand for the specialized metal.

Persistent Supply Constraints

Ruthenium's supply is inherently restricted due to its production method. It is exclusively obtained as a by-product of mining other platinum-group metals (PGMs), with the majority of this output originating from South Africa. This co-production model means that ruthenium supply cannot be independently scaled up to meet rising demand.

South African PGM production has faced consistent challenges, contributing to the current supply deficit. In January 2025, the country's PGM output experienced a 3.8% year-on-year decline. This trend of decreasing production has been observed over several years, largely due to insufficient investment in new mining projects and infrastructure.

Market Outlook and Projections

Analysts are forecasting a significant supply shortfall for ruthenium in the near future. Projections indicate a deficit of 203,000 ounces for the year 2026. This anticipated imbalance between constrained supply and growing demand is expected to maintain upward pressure on ruthenium prices.

The unique properties of ruthenium, including its hardness and resistance to corrosion, make it indispensable in high-performance applications. As AI and cloud computing continue their rapid expansion, the strategic importance of this niche metal is likely to grow, further highlighting the vulnerabilities in its supply chain.

Implications

Country Impact: South Africa, as the primary source of platinum-group metals, faces increased scrutiny regarding its mining sector's stability and investment climate. Continued declines in PGM output could impact its export revenues and global market position for these critical materials.

Industry Impact: The electronics and semiconductor industries, particularly those supporting AI and cloud computing, will likely face higher input costs for ruthenium. This could lead to increased production expenses or drive innovation in material substitution, though ruthenium's unique properties make this challenging.

Market Impact: The global market for specialty metals will see heightened volatility and speculative interest in ruthenium. Investors may seek exposure to companies involved in PGM mining or those developing alternative materials, while end-users will grapple with securing consistent supply at elevated prices.