Catalytic converter thefts are dropping. It's no coincidence that metal prices are falling, too

As the value of the precious metals found inside catalytic converters steadily falls, so too are the number of police reports being filed across Canada about the automotive parts being stolen.

Criminals steal catalytic converters, which control emissions from a vehicle, because they contain small amounts of platinum, palladium and rhodium. 

Prices for all three metals began climbing in 2020 and 2021 before levelling off — or, in the case of rhodium, plummeting by about 80 per cent from a high of almost $30,000 US per troy ounce in March 2021.

"I've just heard anecdotally that across North America the problem has diminished," said Const. Dani McKinnon, public information officer for the Winnipeg Police Service. 

Winnipeg police have had 25 thefts reported so far this year compared to 1,797 for all of 2022.

It's a similar story in Calgary, Edmonton, Montreal and Halifax, where police data shows substantial decreases in reported stolen catalytic converters in 2023 after peaking the previous year.

In Vancouver, the number of reported thefts reached their highest point in 2023 but police say thefts have been trending downward. As of July 8, the Vancouver Police Department had 541 thefts called in this year, down 14 per cent from the same period in 2023.

Edmonton police have also seen a big change in year-over-year thefts, with 330 reported in the first half of 2024 versus 1,222 during the same period the year before.

The soaring price of rhodium was triggered by shortages of the metal as a result of COVID-19 lockdowns and an explosion in 2020 at a large rhodium processing plant in South Africa.

"It completely stands out as a freak event," said Henk de Hoop, CEO of SFA Oxford, a U.K.-based commodity consulting firm.

Rhodium production has now ramped back up, stabilizing supply. Meanwhile, demand has fallen as vehicle manufacturers focus more on electric vehicles, which don't have catalytic converters.

That's translating into a lower trade-in price at scrap metal yards for catalytic converters — or, as Dov Dimant calls them, "cats." 

"Volkswagens had really expensive cats coming off of Jettas, Golfs. Like that was one of the easiest, most lucrative ones to steal," said Dimant, owner of Vancouver's Capital Salvage.

"Those were 300, 400 bucks a pop. Now you'd be looking at about 100 bucks, maybe $125."