China Opens First Rare and PM Metals Exchange
Source: Commodity Online (6/29/11)
"The exchange may solve long-term problems in China's PM industry, such as high logistics costs and lack of capital."
China, the world's leading metal manufacturer, opened its first rare and precious metal exchange at Yongxing of Hunan province.
The Hunan South Rare and Precious Metal Exchange, built with a total investment of 260 million yuan ($40.2 million), opened in Hunan's Yongxing County, whose silver output accounts for one-fourth of the country's total silver output.
The exchange, covering an area of 12.6 hectares, includes an exchange hall, several vaults and a quality inspection center.
It is able to provide spot trading, late trading and long-term trading of non-ferrous metals, rare materials and precious metal products or raw materials.
In addition, online trading service accessible for both domestic and foreign consumers will be soon put on its agenda.
Analaysts said such an exchange can solve the problems that have long plagued China's precious metals industry, such as high logistics costs and lack of capital.
"Our goal is to reach 1 trillion yuan in annual trading volume by the end of 2015," the exchange said in a staterment.
Located in southern Hunan, Yongxing County is known as the "Silver City" of China for its abundant reserves of silver. Its silver output reached 2,050 tons in 2010.
An estimated 800 to 1,000 companies from Shenzhen, Guangzhou and Yongxing are expected to trade on the exchange.