Can you explain and help me understand PGM pricing and terms?
Why do different Buyers quote different prices on the same day?

Can you explain and help me understand PGM pricing and terms?
Why do different Buyers quote different prices on the same day?


Got it. This goes hand in hand with the reminder that ScrapCATapp does not buy or sell converters, we are the marketplace for any participating/interested Buyer or Seller. The PGM prices on our website are not set by us, we provide Kitco’s real time prices on our site to give Buyers and Sellers a reference.


Exactly, the amount represents, as best as they can determine, the Bid Price for each of the Metals on their site. The Price does NOT represent the price the Buyers on ScrapCATapp use to price out your converters. In fact, every Catalytic Converter Buyer uses their own specific hedge price when determining a price they will offer for your converters.

Now, because Rhodium is a thinly traded metal its Bid/Ask price is NOT determined by the worldwide market (like in the case of gold, silver, copper, etc.)

For thinly traded metals like Rhodium, the Ask Prices are simply declared by a major refiner. (Technically, any seller can declare a price… YOU could declare a price for Rhodium!). This is where it gets interesting. A refinery can publish Ask price of $25,000 per ounce, but that does not mean anyone actually, or will actually, pay that amount for the Rhodium.

This is why you may see a very high Ask price and want to sell at that level, however, if you try to sell at that level, you will likely be disappointed to find out there is no one willing to buy it from you at that price.


So the Bid Price is the amount that was actually paid for the metal in this example? And if I am buying the metal right now for immediate delivery, it would be called the Spot Price?


You got it. The Rhodium market is small and illiquid leading to many of the pricing discrepancies we see published. Our advice would be not to put too much credence on the Bid or Spot Price when deciding to whom you sell your converters. While this is helpful to get an overall sense of the market, this specific price will likely not be the specific price your converter price is based on.

The true value of your converters is not determined by what Buyers claim about their “metal pricing” and how it is “Higher (better) than anyone else’s”. Just like in the Bid/Ask example above, your value is based on what they will actually pay you for your converters.


This topic is a great example of the problems Sellers are forced to confront when selling their converters. Many Buyers want Sellers to focus on the wrong metrics (things like Bid/Ask pricing, hedging, PPM counts, etc.) when the only metric that ScrapCATapp thinks should matter to the Seller is the answer to a simple question:

“Scrap CAT Converter Buyer,
what are you willing to pay me for my LOT of converters”?


You are right, sometimes this question gets muddled. Let me ask you:

If Buyer A tells you his Rhodium price is $20,000 and he offers you $50,000 for your LOT of converters,

And Buyer B tells you his Rhodium price is $15,000 and he offers you $75,000 for your LOT of converters,

What would you do? Would you care about the Bid/Ask/Spot/Forward Price and the metal liquidity? Or do you care about being paid the highest price?

This is why ScrapCATapp supports the auction process, it shifts the focus from the confusing metrics ($20,000 Rhodium price vs. $15,000 Rhodium Price) to the actual meaningful metric. (What is better? The $75,000 offer or the $50,000 offer).

Thanks Scott, I think this will give some insight and clarity to Sellers who have probably struggled with this question in the past.

Want to find Buyers willing to make you direct, straightforward offers for your Scrap Catalytic Converters?

Want to stop having to struggle and worrying about Bid/Ask Pricing, Hedging, and Debatable Assay Results?

Sign up and Sell your Inventory on the ScrapCATapp online Auction Marketplace today and let the right Buyers FIND YOU!

(As a reminder – Signing up, Viewing, and Bidding on your Scrap Catalytic Converters, via the ScrapCATapp Online Marketplace, is simple, easy, and best of all completely free for ALL Buyers!)

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