SPOTLIGHT: Fanya sales drive minor metals business in China

Selling on the Fanya Exchange has become the most significant part of some China-based minor metal producers’ business as they capitalise on its higher values, compared with the spot market.

Transactions valued at nearly 175 billion yuan ($28.6 billion) have taken place on the Kunming-based Fanya since the exchange opened in April 2011, it says on its website.  Indium contracts listed on Fanya have been trading at about 6,280 yuan ($1,010) per kg since December, a premium of about 35% more than the price in the physical spot market. By comparison, Metal Bulletin’s assessment of spot indium prices in China’s domestic market was 4,700-4,750 yuan per kg on Friday January 10. An opportunity for sellers This has for the moment created a haven for indium producers in China, after several years of weak exports and low domestic demand. “We saw both our sales volumes and prices increase by at least 50% in 2013,” an indium producer in China said. “Thanks to Fanya, last year was the best year for us since the founding of our company,” he added. Germanium and bismuth...

Published

January 14, 2014

10:00 GMT

London, Shanghai