Highlights

• Baotou Rare Earth Products Exchange reports a 52.63% year-on-year increase in trading volume and expanded to 89 product categories.
• Launched an innovative competitive bidding platform and 'capacity pre-sale' model, saving companies over ¥4 million.
• Developed a comprehensive supply chain finance program with five banks, extending ¥45 million in credit to rare earth firms.

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The Baotou Rare Earth Products Exchange (commonly known as Rare Earth Exchange, or 稀交所) reported (opens in a new tab) a 52.63% year-on-year increase in trading volume and a 6% rise in transaction value in the first half of 2025. With 1,231 registered companies, the Exchange is taking concrete steps toward its long-stated goal: becoming China’s official national-level trading center for rare earth products.

Bidding Innovations & Futures-Like Pre-Sale Model

In a key innovation, the Exchange launched a transparent competitive bidding procurement platform—as reported by Rare Earth Exchanges (REEx)-- saving over 4 million (~US$550,000) for companies in the first half of 2025. The model allows suppliers to compete on price in real time, resolving cost opacity that has long plagued raw material procurement in China’s rare earth industry.

Also notable is the development of a “capacity pre-sale” model, allowing producers to lock in future supply and pricing with transferable delivery contracts—a mechanism that closely mirrors Western commodity futures, but tailored to China's REE sector.

Product Expansion and Logistics Coverage

Chairman Chang Guoxing noted that the Exchange has expanded far beyond primary rare earths into auxiliary materials, waste streams, processing services, and logistics. With 89 listed product categories—7 added this year—the Exchange achieved the first-ever online sales of high-praseodymium cerium carbonate and polymer additives. Warehousing agreements in Ningbo and Ganzhou now support interregional fulfillment and ease of settlement.

Price Benchmarking & Index Strategy

Baotou’s Exchange is ramping up price-setting capabilities. It has now published 151 consecutive daily price reports, drawing data from over 150 REE companies, including China Rare Earth Group and Jinlong Rare Earth. A pilot REE price index (developed with state-run Xinhua Index) has released 25 spot price series, and a new “trend index” was launched in June. The intent is to standardize REE pricing benchmarks across China, with plans to syndicate via national financial news platforms.

Supply Chain Finance: The "Xi Rong Tong" Suite

In March, the Exchange launched its “Xi Rong Tong” finance program, partnering with five banks to provide 13 customized credit products, including inventory-backed loans and quick credit lines. To date, it has extended 45 million (~US$6.2M) in credit to six rare earth firms—positioning itself as a financing hub, not just a trading platform.

Implications for the West:

• Will China’s national pricing index pressure Western markets to respond with their own? (Note: REEx is working on transparency elements necessary for an eventual exchange.)
• Can ex-China producers replicate the Exchange’s financing-and-fulfillment ecosystem?
• Is this part of a broader centralization effort to further dominate rare earth trade terms globally?