Ruthenium, a lesser-known member of the platinum-group metals (PGMs), has experienced an unprecedented surge in price, reaching historic highs as the market grapples with tightening supply and escalating demand. This rare metal, which plays a crucial role in various high-tech applications, is increasingly sought after due to its importance in the rapidly expanding artificial intelligence (AI) sector. Industry analysts and producers alike have highlighted the growing pressure on ruthenium supplies as AI-related technologies continue to drive demand upward.
Primarily utilized in electronics, semiconductor manufacturing, and chemical processing, ruthenium’s significance has been amplified by its role in AI-driven data storage solutions and cloud computing infrastructure. The expansion of data centers worldwide has led to a notable increase in the production of hard disk drives, where ruthenium is employed in the magnetic layers that enhance storage capacity and durability. This surge in data center capacity is a direct response to the global digital transformation, which heavily relies on AI technologies to process and store vast amounts of information efficiently.
Market data from the London Stock Exchange Group (LSEG), referencing Johnson Matthey’s benchmark prices, reveals that ruthenium’s price climbed to approximately $1,750 per ounce as of March 13, a dramatic rise from just $560 per ounce a year earlier. This steep increase underscores the metal’s emerging status as a valuable commodity closely linked to the AI buildout. Nicky Shiels, Head of Research and Metals Strategy at MKS PAMP, noted that ruthenium is increasingly viewed as a “precious proxy” for AI development, attracting heightened interest from investors who are expanding their market positions in anticipation of continued growth.
Looking ahead, Wilma Swarts, director of PGMs at Metals Focus, has projected a significant deficit of around 203,000 ounces by 2026, signaling ongoing supply challenges. The root of these constraints lies in ruthenium’s production process—it is not mined independently but emerges as a by-product during the extraction of other platinum-group metals. South Africa, which dominates global PGM mining, remains the primary source of ruthenium. However, production in the country has been on a decline, with Statistics South Africa reporting a 3.8% year-on-year drop in PGM output as of January 2025.
This downward trend in South African PGM production is attributed to limited investment in new mining projects over the past two decades, a situation highlighted by Northam Platinum, one of the key players in the sector. The lack of fresh capital inflows and exploration activities has resulted in a structural supply bottleneck, which, combined with surging demand from the AI and technology sectors, is pushing ruthenium prices ever higher. The market dynamics suggest that unless new sources or alternative technologies emerge, ruthenium will remain a scarce and highly prized metal in the years to come.
