China's Bohai Commodity Exchange Launches REE Dy2O3 Spot Contract

SHANGHAI, Feb. 20 (SMM) – China’s Bohai Commodity Exchange launched dysprosium oxide (Dy2O3) spot contract today, hoping to create a price discovery vehicle for this important rare earth element (REE).

The spot contract embodies forward-like exposure by allowing payment for delayed delivery, fixed at 0.08% of contract value, according to a statement on the exchange’s website.

Minimum unit of trading is 1 kilogram with tick value being 2 yuan ($0.33) per kilogram, and minimum delivery size is set at 50 kilograms, the statement said. The exchange charges a transaction fee of 1.8 yuan per kilogram, it said.

Established in 2009 and headquartered in Tianjin, an economic hotspot in the country’s north, the Bohai exchange trades around 70 commodities, ranging from petrol, iron ore and rubber to agricultural products.