Indium Prices Climb after Fanya Exchange Inks Deal with Sino-Australian International Trust

SHANGHAI, Jan. 16 (SMM) – Indium prices have climbed nearly 2% in China after Fanya Metal Exchange inked a deal with Sino-Australian International Trust which is expected to drive more investment money into minor metals, Shanghai Metals Market has learned.

Prices of refined indium increased 80 yuan this month to trade between 4,750-4,800 yuan ($779-788) per kilogram today, according to SMM’s pricing data. SMM's prices include a 17% value-added tax and import charges.

After the Fanya deal, merchants, especially those who trade on the exchange, have embarked on stockpiling the metal as they anticipate higher prices in the future, according to SMM’s minor metals analyst Wang Baoqing.

The Fanya exchange and Sino-Australian International Trust have established a trust fund that seeks returns from minor metals traded on the exchange, this first of its kind in China, Fanya said in a statement on its website on Dec. 28, 2013.  Sino-Australian is a joint venture between Macquarie Capital Securities Limited and two Chinese companies.

Indium, used in LCD screens, has been in the spotlight for being in an investment boom from last year when China turned from a traditional exporter to importer.