By Tom Daly
BEIJING, Dec 13 (Reuters) – The Chinese court charged with selling off inventories held by the now-defunct Fanya Metal Exchange said on Friday it would auction off the bourse’s remaining indium stockpiles later this month.
The Fanya auctions are being closely watched by minor metals traders as well as creditors seeking to recover their money after the exchange collapsed in 2015.
Around 3,609 tonnes of indium – a silvery metal used in flat-panel displays and semi-conductors – with a stipulated market value of 3.75 billion yuan ($533 million) will be auctioned over a 24-hour period from 10 am local time (0200 GMT) on Dec. 29.
The minimum bid has been set at 2.85 billion yuan, or 790.40 yuan per kg, according to a notice from the Kunming Intermediate People’s Court on e-commerce platform Taobao.
The court already sold a much smaller batch of 34.64 tonnes of Fanya’s indium in April in a cut-price auction for 1,080 yuan per kg after an initial attempt at a sale in January – the first of a series of Fanya auctions this year – failed to attract any bids.
The volume being sold is equivalent to several years of global indium production and the Fanya overhang has weighed on spot indium prices IN-MM-SHMET.
The price has slumped by 37% so far this year to 965 yuan per kg.
The 13 successful Fanya auctions so far, covering everything from antimony to tellurium, have raised around 5.59 billion yuan, but former creditors of the exchange say they are owed around 43 billion yuan.
($1 = 7.0389 Chinese yuan renminbi)
(Reporting by Tom Daly; Editing by Mark Potter)
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