The Fanya Metals Exchange has transformed minor metals markets since it was launched in 2011.
Created as a way of matching cash from private investors with China's physical abundance of minor metals, the exchange has pulled into its investment scheme a good chunk of the supply of indium, bismuth, and other minor metals.
The so-called “Fanya effect” pushed up the prices of many minor metals as producers were able in many cases to sell to the exchange at a premium, which meant material was diverted from the industrial market.
This has naturally generated great interest in exactly how the Fanya Exchange's investment mechanism works, a question that Metal Bulletin addressed
at the start of this year.
So, given this background, it has also not been surprising that when the recent government-backed investigation into Fanya resulted in a change of trading rules, minor metals market participants took a keen interest.