Ruthenium, one of the lesser-known platinum-group metals, has surged to record price levels as the rapid expansion of artificial intelligence infrastructure drives demand for advanced electronics and data storage components. The metal, widely used in semiconductors and hard disk drive technology, has become increasingly important in supporting the massive growth of data centers powering AI models and cloud computing. With supply tightly constrained and production tied to broader platinum-group mining output, the market for ruthenium is entering a period of structural imbalance that analysts say could persist in the coming years.

Prices Surge as AI Infrastructure Expands

Ruthenium prices have climbed sharply over the past year, reaching roughly $1,750 per ounce as of mid-March, according to benchmark data from Johnson Matthey cited by LSEG. That represents a dramatic increase from approximately $560 per ounce just a year earlier, reflecting a surge in demand tied to the global expansion of AI computing infrastructure.

The rapid buildout of data centers has increased the production of hard disk drives used for large-scale data storage. Ruthenium plays a key role in these devices, forming part of the magnetic layers that enable high-density data storage. As companies invest billions of dollars in AI systems and cloud platforms, demand for storage hardware—and the materials used to manufacture it—has grown rapidly.

Supply Constraints Add Pressure to the Market

While demand for ruthenium is rising quickly, supply remains structurally limited. The metal is not typically mined independently but is produced as a by-product of platinum-group metals extraction, primarily in South Africa. As a result, global production depends largely on the health of the broader platinum mining sector rather than direct investment in ruthenium production.

South Africa, which dominates global PGM output, has experienced declining production in recent years. Data from Statistics South Africa shows that platinum-group metal output fell by 3.8% year over year in January 2025. Mining companies attribute the decline to decades of limited investment in new mines and aging infrastructure across the industry.

Ruthenium Emerges as an AI-Linked Commodity

The metal’s growing connection to the artificial intelligence industry has also attracted the attention of investors seeking exposure to the technology boom through commodity markets. Analysts have increasingly described ruthenium as a “precious proxy” for AI infrastructure expansion, with investors positioning for further demand growth as data centers continue to scale.

This dynamic highlights a broader trend in commodity markets where technological shifts—particularly those related to artificial intelligence, semiconductors, and advanced electronics—are influencing demand for specialized materials that previously attracted little mainstream attention.

Market Outlook and Potential Deficit

Industry analysts expect the tight supply-demand balance to persist in the near future. Metals Focus forecasts a global ruthenium deficit of approximately 203,000 ounces in 2026, suggesting that demand could continue to outpace available supply. If AI-driven infrastructure investments remain strong, prices could remain elevated or move even higher as buyers compete for limited material.

For the broader commodities market, the rise of ruthenium underscores how emerging technologies are reshaping resource demand. As artificial intelligence continues to expand into nearly every sector of the global economy, niche metals once considered obscure may become increasingly strategic components of the digital age.