The boom in artificial intelligence infrastructure and expanding data centers is increasing demand for the metal, while limited supply continues to restrict the market. Analysts say this imbalance is pushing prices sharply higher.
As the AI industry expands, ruthenium is quietly becoming an important part of the technology supply chain, as per a report by Reuters and NIH.
Why is ruthenium demand rising so quickly?
Ruthenium may not be widely known outside industrial circles, but its importance in modern technology is increasing rapidly.
The metal is used in several key applications, including electronics manufacturing, semiconductors and chemical processing. It also plays a role in catalysts used for chemical synthesis.
One of the biggest drivers of demand today is the expansion of artificial intelligence infrastructure.
As companies build more data centers to support AI computing and cloud services, production of hard disk drives has increased. Ruthenium is used in the magnetic layers of these drives, making it a crucial component in data storage technologies.This link between AI growth and data storage demand has turned the metal into what some analysts now describe as a new strategic material for the digital economy, as per a report by Reuters and NIH.
“The fact that it’s establishing itself as a ‘preciousproxy for the AI buildout’, investors have likely also expandedpositioning,” said Nicky Shiels, Head of Research & Metals Strategy at MKS PAMP, reported Reuters.
What is limiting global ruthenium supply?
While demand continues to grow, supply has struggled to keep pace. One major reason is that ruthenium is not typically mined on its own. Instead, it is produced as a by-product during the mining of other platinum-group metals.
Much of this production comes from South Africa, which dominates global PGM mining. However, output from the country has been declining in recent years.
Data from Statistics South Africa showed that platinum-group metals production in the country fell 3.8% year-on-year in January 2025. Mining companies say the problem is linked to long-term underinvestment in new mining projects.
According to Northam Platinum, the industry has seen limited investment in new mines over the past two decades, contributing to falling output and tighter supplies.
Because ruthenium depends on these mining operations, its availability is directly tied to the broader PGM industry.
How high have ruthenium prices climbed?
The tightening balance between supply and demand has pushed ruthenium prices to record levels. According to data from LSEG citing Johnson Matthey’s benchmark prices, ruthenium was trading at about $1,750 per ounce on March 13.
Just one year earlier, the price stood at roughly $560 per ounce. That dramatic increase highlights how quickly the market has shifted as demand from the technology sector accelerates.
Market analysts also expect supply shortages to continue. Wilma Swarts, director of PGMs at Metals Focus, predicts the market could face a deficit of about 203,000 ounces in 2026.
With production limited and demand from electronics, semiconductors and AI infrastructure continuing to rise, the metal’s role in global technology supply chains is becoming more significant.
As artificial intelligence expands and data storage needs grow, ruthenium’s importance in the modern economy may only continue to increase.
FAQs
Why are ruthenium prices rising?
Growing demand from AI-related technologies and limited supply from mining operations are pushing prices higher.
What industries use ruthenium?
Ruthenium is used in electronics, semiconductors, chemical catalysts and hard disk drives.