The amount of palladium and platinum recovered from cars is set to rise over the next few years, according to a report in Recycling Today.

More efficient methods for recovering the metals and growing commercial demand will lead to "significant growth" in the recycling of platinum group metals, including rhodium, the report claims.

Palladium from recycled convertors will increase faster than platinum or rhodium, as the metal was used more in convertors built in the late 1990s.

Platinum will catch up, however, as the large quantities of the metal contained in diesel cars will become more available as the vehicles reach the end of their lives.

Estimates suggest palladium sourced from the recycling of scrap converters could jump by a fifth in 2012, rising to 1.62 million ounces, up from 1.35 million ounces in 2011.

"Platinum totals from recycled converters could rise to 1.2 million in 2012, from one million last year, while rhodium could see a 15 per cent increase to 260,000 oz from 225,000 oz in 2011," notes Recycling Today.

Growing demand for cars from China in particular is fuelling growth in the auto industry, which will be a key driver of increased recycling rates.

"Some measure of increase in the flow of salvage converters from China also may be expected to commence in the next decade, and with its greater mix of palladium to platinum used in converters, the majority of the pgms reclaimed will be that of palladium," the report says.

Around 78 million cars are in use in China. This could rise by 20 million a year, according to Wards Auto.

"Undoubtedly, the rate of automotive recycling in China will rise later this decade as more end-of-life vehicles make their way to market," says Recycling Today.

Currently, autocatalyst production accounts for one-third of platinum demand, according to Johnson Matthey.

Industrial applications account for 30 per cent and jewellery for 29 per cent.

One day, however, metal recovered by recycling vehicle parts could mean the supply of pgms in the auto sector becomes renewable.

Source:

REV YOUR ENGINES (16/01/12)

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