Xinhua reported that China, the world top rare earth producer, plans to establish a global authoritative pricing index for rare earth metals in an effort to enhance its pricing power over the resources.

Mr Zhang Zhong general manager of the Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co, China largest rare earth producer said the country newly launched rare earth trading exchange will team up with futures and financial information institutions to compose the pricing index.

However, Mr Zhang did not provide a timetable or elaborate on the creation of the index. He said that it will take some time for the exchange to start trading because of some unfinished preparatory work.

China now supplies more than 90% of the world's demand for rare earth metals. Mr Zhang said the proportion will experience a substantial decrease over the next few years.

The REHT launched the trading platform in the city of Baotou on Wednesday along with nine other domestic rare earth firms and institutions with a total investment of CNY 100 million. The 10 companies and institutions produce about 88% of the country's annual rare earth output.

Source - Xinhua

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