Pressure on chlorinator pricing as data centres push ruthenium costs higher

Ruthenium, a vital element in the production of swimming pool chlorinator cells, has continued it rapid cost increase – accelerated in part by global demand for data centres.

In March this year, SPLASH! reported that the price of this essential element had shot up to $US1550 per troy ounce, representing a 225 per cent increase in a short period of time.

As of November, the price has shot up even further to $1900 per troy ounce, representing a near 300 per cent increase in just 12 months.

Declan McGuire, director of chlorinator manufacturer Pool Controls, says this price increase is quicker than expected, and based on this trend could reach $US2500 per troy ounce.

“Ruthenium has now reached $US1900 per troy ounce, up from its previous high of $US1707 – representing a further 11.31 per cent increase,” says McGuire.

“There are now expectations that prices could reach $US2500 per troy ounce, primarily driven by the extraordinary growth in data centres worldwide and the increasing demand for data storage.”

Twelve months ago, the price was $US476.82. The previous high was $US1707. The current price is $US1900. The potential future price is $US2500.

“If it reaches $US2500, that will represent a staggering 424 per cent increase over the original price, or more than five times what manufacturers were paying a year ago,” he says.

“From today’s price of $US1900, a move to $US2500 would mean another 31.6 per cent increase in ruthenium costs alone.”

McGuire points out that the ruthenium price increase will place even greater pressure on cell production costs, product pricing and potentially cell longevity as manufacturers look to manage the escalating cost of coatings.

Meanwhile, at the SPLASH! Trade Expo, AIS Water CEO Elena Gosse encouraged the industry and consumers to continue to prioritise water quality and swimmer health over cheaper alternatives to effective, high grade anode material, in light of these increased cell production costs.