SPOTLIGHT: How things work on Fanya now…

A certain exchange in mainland China has risen to become the most prominent in the minor metals markets since it was launched four years ago in Kunming, in south-western China’s Yunnan province.

The Fanya Metal Exchange was designed to allow both major players and individual investors – of which the exchange claims to have in the region of 220,000 – to trade metal and collateralise material for financing.
Its launch caused a spike in prices across all of the metals listed on the bourse in 2011, and the exchange has continued to have a major impact on prices and sentiment in the marketplace ever since, with some minor metals traders arguing that its launch has been the biggest single factor in their markets since then.

Indium, bismuth prices over the past six years. The spike in early 2011 for indium represents the launch of Fanya’s contract, while bismuth was rising on a shortfall of crude material in China. Bismuth’s rise in 2013 represents Fanya’s launch of the bismuth contract. The fall at the end of 2014 was a drop in investor confidence in Fanya, which...

Published

James Heywood

July 02, 2015

14:56 GMT

London