Other Useful Reasons For Its Existence
In addition to these three, the exchange appears to serve several other useful and important purposes—as described by some of the speakers at the exchange's third anniversary celebration on April 18.
Vis-à-vis the "rare metal industry" and "rare metal production," the exchange enables China both to exert more influence and extract more profit. According to Qinhua Wang, the vice chairman of China Nonferrous Metals Industry Association:
"We hope to increase Chinese speaking right of rare metal industry by the connection between rare metal industry and financial industry.
"Although China has a very important position in rare metal production, consumption and import and export, we have no enough influence on rare metal in the world and we didn't get reasonable profit in the international rare metal industry.
"Under the circumstance that the prosperous development of strategic industries, our position becomes more important. Minor metal, great contribution! We expect to increase our rare metal's pricing mechanism and great influence on international market and strengthen Chinese market speaking right gradually."
And, according to Feng Cheng, chairman of China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC):
"Seen from the worldwide value chain, Fanya is function as the protector of Chinese rare metal resource and promoting the national market pricing as well. In the meantime, Fanya also makes the ordinary investors get profit, which realized the four parties win-win situation of country, industry, enterprises and investors."
On the pricing front, too, the exchange has been helpful to a number of minor metal producers—extremely helpful if two producers, one of gallium and one of antimony, are to be believed. And they are probably not alone:
"Fanya, who combines with the real economy and capital achieves a surprising effect. I think the most sad thing is that we sell our resources at very low price to overseas markets currently, but we have no resource to use when our industry is well developed and upgrade to a new level in the future. With the platform of Fanya, antimony enterprises need unite together to maintain antimony market order and seek more reasonable pricing mechanism." —China Minmetals Corp.
"Gallium is not raw ore, of which about 90 percent is extracted from the production of aluminium oxide. If we don't produce the gallium from aluminium oxide, it will be washed away. Chinese gallium resource takes up about 90 percent of the world, but current gallium price in the market failed to show its resource value, that is to say that we give the resource to the overseas market without taking any payback. Gallium industry should have a better future." —Libing Jia, Chairman of the board of Zhuhai Fangyuan