Metal Bulletin recently asked: “Has the Fanya Metal Exchange removed volatility from the minor metals markets?”
A huge 72% of respondents answered “no”, with the remaining 28% saying “yes”.
The spread between prices quoted on Fanya and the Chinese spot market has attracted increased attention from minor metals producers, consumers and traders in recent months, as the volume of stock that Fanya has reported holding in its warehouses has grown.
Selling on the Fanya Metal 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.
Gallium producers in China have been looking to base contracts on Fanya prices
, breaking with the norm of basing them on prices assessed by price reporting agencies.