Fanya metal exchange's cobalt inventory sold for 5.91 million yuan

Removes dollar symbol from headline

BEIJING, Oct 6 (Reuters) - The cobalt inventory formerly held by Southwest China's Fanya Metal Exchange was on Sunday sold to Shanghai Sanqian New Energy Materials for 5.91 million yuan ($826,839) in an online auction, according to the e-commerce platform that hosted the sale.

The series of Fanya inventory auctions by the Kunming Intermediate People's Court are being closely watched by minor metals traders, as well as creditors seeking the return of around 40 billion yuan following the collapse of the Yunnan-based exchange in 2015.

The bourse was later taken over by government investigators and its founder was jailed in March for 18 years for crimes including embezzlement.

In a day-long auction that ended in Beijing at 1015 (0215 GMT) on Sunday, Shanghai Sanqian New Energy Materials made the highest bid for the cobalt, which is currently in storage in Shanghai, according to the auction page on Taobao.

Even with China observing its National Day holiday from Oct. 1-7, the auction was a hotly contested affair with 143 bids, many submitted on Sunday morning.

The price paid works out at 281,262 yuan ($39,350.00) a tonne, above the current London Metal Exchange cobalt price CBD0 of $34,000 a tonne, Reuters calculation showed. London cobalt was trading at more than $90,000 a tonne 18 months ago.

The starting price in the auction had been set at 3.92 million yuan, while the market value was put at 4.9 million yuan.

Six Fanya auctions so far, covering materials as varied as antimony and ammonium paratungstate (APT), have raised more than 4 billion yuan.

However, one Shanghai-based former investor in the exchange, who puts the total amount owed at around 43 billion yuan, said creditors "will not simply accept repayment only from the result of auctions".

"If there is any gap between the auction proceeds and our original investment, we will keep pushing the government to close the gap," the former investor said on condition of anonymity.

The table below shows the results of Fanya auctions held so far.



Sold for (yuan)




37.4 mln

China National Corp for Overseas Economic Cooperation



546.1 mln

China Minmetals Rare Earth Co

Terbium oxide


12.8 mln

China Minmetals Rare Earth Co

Dysprosium oxide


221.5 mln

China Minmetals Rare Earth Co



3.27 bln

China Molybdenum Co



5.91 mln

Shanghai Sanqian New Energy Materials

($1 = 7.1477 Chinese yuan renminbi)

China court jails scandal-hit Fanya metals exchange founder for 18 years - Xinhua

China Moly wins Fanya metal auction, investors await return of funds

(Reporting by Hallie Gu, Huizhong Wu and Tom Daly; Editing by Christopher Cushing)

((; +86 10 5669 2119;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.