What’s the story
Ruthenium, a minor metal in the platinum-group metals (PGMs) group, has hit an all-time high price due to supply constraints and rising demand from artificial intelligence (AI).
The metal is commonly used in electronics, semiconductors, and chemical processing.
Its demand is particularly surging due to AI-driven data storage and cloud computing technologies.
Hard disk production driving up prices
The expansion of data center capacity is driving up hard disk drive production, which uses ruthenium in its magnetic layers.
This increased usage has contributed to a surge in ruthenium prices.
According to LSEG data cited by Johnson Matthey, the price of ruthenium was around $1,750 per ounce on March 13, up from just $560 per ounce a year ago.
What do analysts say?
Nicky Shiels, Head of Research & Metals Strategy at MKS PAMP, noted that ruthenium is becoming a “precious proxy for the AI buildout.”
This growing status has likely led investors to expand their positions in the metal.
Wilma Swarts, Director of PGMs at Metals Focus, forecasts a deficit of 203,000 ounces in 2026.
Supply constraints
The supply of ruthenium remains structurally constrained as it is only produced as a by-product of PGM mining, mostly in South Africa.
According to Statistics South Africa data, platinum group metals output in the nation fell 3.8% year-on-year in January 2025.
Northam Platinum has also noted that PGM production has been going down for several years due to limited investment in new mines over the past two decades.