Ruthenium prices hit record high as AI boom squeezes supply

2026-03-16 - 08:14

Ruthenium, a minor metal in the platinum-group metals (PGMs), has surged to an all-time ​high as supply constraints and growing demand linked ‌to artificial intelligence tighten the market, analysts and producers said. Used in electronics, semiconductors, and chemical processing, ruthenium is seeing ​rising demand from AI-driven data storage and cloud ​computing. Expansion in data centre capacity is ⁠lifting hard disk drive production, where the metal ​is used in magnetic layers. Ruthenium prices were around $1,750 per ​ounce on March 13, according to data from LSEG, citing Johnson Matthey’s benchmark prices, up from $560 per ounce a year ​earlier. “The fact that it’s establishing itself as a ‘precious ​proxy for the AI buildout’, investors have likely also expanded positioning,” said ‌Nicky ⁠Shiels, Head of Research & Metals Strategy at MKS PAMP. Wilma Swarts, director of PGMs at Metals Focus, predicts a deficit of 203,000 ounces in 2026. Moreover, supply remains ​structurally constrained because ​ruthenium is ⁠produced only as a by-product of PGM mining, largely in South Africa. Platinum group ​metals output in South Africa fell 3.8% ​year-on-year ⁠in January 2025, Statistics South Africa data showed. PGM production in South Africa has been declining for several years ⁠due to ​limited investment in new mines ​over the past two decades, Northam Platinum said.