Australian Certified Automotive Recycler

Catalytic Converters – May 2021

The value of a Catalytic Converter comes from the extraction of precious metals they contain, and the re-use of these metals in manufacturing new Cats.

We are all aware of the sharp increase in prices for Catalytic Converters recently, due in part to China and Europe increasing their vehicle emissions standards, thereby requiring more precious metals to manufacture a Converter.

Rhodium, one of the key metals and one of the rarest materials on Earth, has both faced an increase in demand and decrease in supply over the past year, skyrocketing the value to 15x that of Gold.

The significantly increased price has influenced some in-the-know Recyclers to purchase vehicles they usually would not consider purchasing, with some vehicles being purchased for hundreds of dollars, and the Catalytic Converter being sold for $1500.

A common topic of conversation between businesses of late has been comparing what they are getting paid for a typical Cat. Where one vendor may offer $250, another may offer $350, leading to the question “What are they truly worth?”.

ARAA is aware of programs being introduced in other countries to assist recyclers obtain fair market prices for their Cats.

Please let us know if you would be interested such programs for your business.

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