China Will Launch A Rare-Earth Trading Platform In August
July 12, 2012 Leave a comment
China’s largest rare-earths manufacturer Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co. Ltd plans to launch a physical-trading platform for rare earths, according to the WSJ.
State-owned Batou will launch its first spot-trading platform on August 8.
China controls about 95 percent of rare earth metals which are used in hi-tech and defense sectors. And such a platform would help the country exercise more control in the pricing of important minerals.
“The market for rare earths is largely opaque because they aren’t sold in public markets and move in small volumes, and only a few private-sector and government sources provide pricing data. A trading platform could provide some clarity, but if successful it could also give a China-based entity a role on determining rare-earth prices.”