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...

Published

January 14, 2014

10:00 GMT

London, Shanghai