5 questions about today’s converter realities

For those following the market these days, insecurity is at an all-time high. With geopolitical conflicts, vehicle sales dropping and a downcycle economy, catalytic converter recyclers want to know how they can keep gaining on their material’s value.

PMR Inc. isn’t indifferent to the realities recyclers face. That’s why we want to give concrete answers to your burning questions about converter realities in 2023.

1. Where is the PGM market headed?

According to London-based specialty chemicals and technology firm Johnson Matthey, the palladium and rhodium markets are moving towards a more balanced outcome this year. We expect to see a rise in the supply of these two metals as primary mines move into optimization and expansion programs, leading to a potential rhodium surplus. Platinum, however, is forecast to shift into deficit sometime in late summer 2023.

It’s a well-known fact that vehicle lifecycles have only increased as new vehicle prices skyrocket. But, new vehicle registration is projected to grow gradually, and we expect secondary supply of platinum group metals (PGMs) to increase as well. The PGM market will remain in a highly volatile state for the rest of the year, but experts expect a positive turn in the coming years.

2. Why is there an urge to ship catalyst material?

You’ll want to reduce your market exposure by shipping material more frequently. Increasing shipping frequency will help you operate on a profit margin and capture current market trends before they fluctuate again.

It’s important to remember that if your converters are piled up in your yard, you won’t have the rapidity to capture current market trends, especially in an extremely volatile market. Make sure you’re shipping often so that you never miss an opportunity.

3. How can I stay on top of changing legislation?

Being part of an association and having a reliable business partner can help you stay in the loop because they provide insight on changing legislation, help you stay alert on new thievery tactics and help you secure material with ease. You’ll also make the most informed purchasing decisions that help you optimize your business overall.

4. Who can help me level up my operations?

You’ll want to have a processing partner or buyer who acts like a consultant so they can give you valuable insight and data, like quarterly reports and pricing tools, that not only help you visualize your business but optimize it. Look for a partner who has the technology to give you accurate assay results and adaptable hedging options that fit your unique needs.

5. How can I sustain my operations in the years to come?

There’s no magic recipe to success, but one thing is true: Progress only happens outside the box. Get a partner who helps you adopt a long-term vision with converters and helps you build on your operations, not just remain stagnant. You want to adopt a progressive strategy, like Netflix, which singlehandedly captured all streaming market share because it revolutionized the way we watch movies and television shows, sweeping Blockbuster under the rug because it set itself apart as the progressive and adaptable solution.

Doing things differently means standing out, and in this industry, being remarkable gives you the sharpest edge in the business.