In the shadow of the AI revolution, one of this year’s best-performing commodities isn’t gold or silver, it’s a little-known metal called ruthenium.
Ruthenium, a silvery-gray element in the platinum group, has seen its price nearly double over the past 12 months, reaching $800 an ounce, according to metals refiner Johnson Matthey Plc. That marks a return to its 2021 peak and puts it within striking distance of the all-time high of $870 set in 2006.
Unlike mainstream commodities, ruthenium isn’t traded on any exchange, and it remains one of the rarest industrial metals on the market. Global supply was just 30 metric tons last year, most of it produced as a byproduct of platinum mining. But with limited investment in recent years and a projected supply drop, analysts expect the market to enter a deficit as early as next year.
What’s driving the rally? Artificial intelligence, more specifically, the explosion in data storage requirements. Ruthenium is critical to the production of high-capacity hard disk drives, where it enables dense data layering in films less than a nanometer thick.
“As AI adoption grows and data storage needs surge, ruthenium remains one of the most cost-effective solutions,” said Sandeep Kaler, an analyst at SFA (Oxford) Ltd. “Unless a cheaper alternative emerges, demand will continue to rise.”
Traders are now scrambling to secure limited supplies, with even major buyers reportedly struggling to source the metal. The supply squeeze comes just as the International Data Corporation forecasts a 16% increase in hard disk drive sales this year, a direct result of the expansion in cloud computing.
Beyond data storage, ruthenium’s hardness and versatility also make it valuable in electronics, energy storage, and chemical manufacturing. But with such small quantities used and no transparent market pricing, it remains a high-stakes commodity for niche industrial players.
As the AI era accelerates, ruthenium could remain one of the most sought-after and strategically important metals flying under the radar.
