Rare earth exchange on solid ground

China's first rare earth exchange has operated well in its first year, turning over more than 35,000 tonnes of products, according to its chief.

The trading volume of the Baotou Rare Earth Products Exchange, launched in March last year in Inner Mongolia Autonomous Region, reached 5.6 billion yuan (910 million U.S. dollars) at the year-end, said Gu Ming, general manager of the exchange company.

Ninety-five rare earth firms and traders in about half of China's provinces have opened accounts with the exchange, an electronic platform created to help regulate the domestic rare earth industry and improve its transparency, Gu said.

Located in Baotou City, the exchange was initiated by China North Rare Earth Group Co. Ltd, the country's leading rare earth producer, and another 12 firms and institutions with a registered capital of 120 million yuan.

It has three spot transaction modes: price bidding, listed trading and real-time trading online, with trading items including cerium oxide, praseodymium-neodymium oxide and europium oxide.

China is the world's largest rare earth producer and exporter, accounting for more than 90 percent of the world's supply. However, the country lacks pricing power in the global market and wild price swings of resources have hurt Chinese producers. Endi