China’s first rare earth products exchange, the Baotou Rare Earth Products Exchange, the first national trading platform of its kind, has been put into a trial run. The exchange will handle spot trading for rare earth products, but will not yet engage in futures.

General manager of the Baotou Rare Earth Products Exchange, Gu Ming said the exchange would help the Chinese rare earth industry to have a bigger say on prices in the global market. He also said it would bring the different production regions closer, raise the transparency of trading prices, adjust long-term supply and demand and stabilize the market.

The exchange was initiated by Baotou Steel Rare Earth Hi-Tech Co., which is the world’s largest rare-earth producer. The company received approval from the local government of Inner Mongolia Autonomous Region in May 2011 and registered the exchange with another 11 companies.

The total registration capital stood at 120 million yuan or 19.5 million US dollars in August 2012.