bensonwalk

Commodity exchanges have sprung up over time either at the source of the capital in major financial centres (e.g. LME and New York Mercantile dth drill pipe Exchange) or at the source of the product traded (e.g. the various spice exchanges in India) or the attempts to launching exchanges in Indonesia Sandvik DTH Hammer and Malaysia dealing in local products such as tin or palm oil.

As is well known the Chinese dominate a number of metals through the production of the raw material and at the same time are important as the end-consumers or processors of the same metals. Thus to some extent it makes sense that the trading of these metals should take place at exchanges within China rather than in some far distant place like Singapore or London. Moreover it would seem the Chinese are also tired of the low value added that the big trading houses bring to the equation. Knowing the end users in a space like Antimony or Rare Earths, for instance, is no rocket science. Everyone knows who they are, so why would one need some slick-suited bankerish type intermediating the transaction when in some cases the product is produced in China and ends Hard Rock Drill Bits up in an industrial application within China?

Bringing Home the Bacon

The issue has been addressed in two ways. Firstly we saw the Hong Kong-backed acquisition of the London Metal Exchange (reminiscent of the old advertisement featuring Victor Kiam saying “I liked the product so much I bought the company”). Secondly the establishment of exchanges within China such as the Shanghai Metals Exchange for bulk products (in competition with the LME and more recently with the appearance of the FANYA Metals Exchange in Yunnan province with a focus upon those specialty metals that China has quite literally “made its own”.

http://philipryan.mee.nu/lg_chem_becomes_sole_supplier_for_cylindrical_batteries_of_lucid_motors