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Rhodium fell below $1,000 an ounce for the first time since August 2004 as the dire economic outlook pressured demand for the metal used in autocatalysts.
Rhodium fell to $950 an ounce from $1,225 an ounce on Nov 20. The metal has shed more than 90 percent of its value since it hit an all-time high above $10,000 in June.
Along with the other platinum group metals, such as platinum and palladium, the metal has suffered from falling demand from carmakers, who account for around 80 percent of rhodium consumption.
"Demand for rhodium is absolutely dominated by the auto industry - a quick glance at recent headlines and no-one should be the slightest bit surprised that the metal is trading below $1,000," Mitsubishi precious metals strategist Tom Kendall said.
"No-one should be surprised either if there is more downside to come," he added.
The high price of rhodium has led to increased substitution and thrifting, while overall auto sales, particularly in the United States, have fallen in line with declining economic growth.
Mine supply is expected to increase as mines expand in South Africa, the main producer of the metal, though the tough operating climate there is likely to mean future supply will be lower than forecast, according to Johnson Matthey.
"Overall, the rhodium market is likely to have moved into a short-term surplus -- in contrast to the large deficit in the market in early 2008 -- and this weakened the price," the metals consultancy said in a report earlier this month. (Reporting by Jan Harvey; editing by Sue Thomas)
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