China is planning to launch a rare earth trading platform on Aug. 8 this year, in a move that will help the country extend its efforts to control the pricing of the commodities, said a report.
In a Dow Jones article Thursday, state-run Shanghai Securities News said that the physical trading bourse will be set up by about 10 major Chinese producers, led by the largest company Inner Mongolia Baotou Steel Rare-Earth.
The exchange will be located in Baotou city in China's northern region of Inner Mongolia, which is home to nearly half the world's light rare-earth output, the newswire added.
Dow Jones noted that the Aug. 8 launch date was likely chosen in order to coincide with a major annual industry conference to be held in Baotou city between Aug. 7 and 11. A similar platform was launched by China in May for iron ore, the article pointed out.
Just last week, reports said that China had begun stock piling rare earths for its strategic reserves amid weak prices, tightening the country's grip on the resource used in making high-tech equipment such as advanced electronics and automobiles.
China produces over 90 percent of the world's rare earths supply. Its recent moves to tighten the export of the material has led to an international outcry led by the European Union, Japan and the United States.