[Ferro-Alloys.com] China's first rare earth products exchange opened in Inner Mongolia Autonomous Region after a three month trial.

 

Mr Jia Yinsong a Ministry of Industry and Information Technology official said that “The Baotou Rare Earth Products Exchange is expected to regulate the country's rare earth market, improve the way prices are formed and promote development of the industry. The exchange will introduce three spot transaction modes, namely price bidding, listed trading and real-time trading online, with more than 10 trading items including cerium oxide, praseodymium neodymium oxide and europium oxide.”

 

Located in Baotou City, the exchange was initiated by Baotou Steel Rare Earth (Group) Hi-Tech Company, China's leading rare earth producer and another 11 firms and institutions with a registered capital of CNY 120 million. China is the world's largest rare earth producer and exporter, accounting for more than 90 percent of the world's supply. However, the country lacks pricing power in the global market and wild swings in the price of resources have had a negative effect on Chinese producers.

 

Mr Zhang Zhong GM of Baotou Steel Rare Earth Hi-Tech Company said that “The exchange will help integrate resources during their circulation in China and gradually regulate the trading and pricing of them. Rare earth metals are vital for manufacturing high-tech products ranging from smartphones and wind turbines to electric car batteries and missiles.”

 

Mr Zhang said that the exchange will improve transparency of the market and help China secure a bigger say in the pricing of rare earth products to stabilize the market.