Chinese trading firms exporting indium are discussing a possibility of organizing an export cooperative, sources in China and Japan told Platts this week.
The idea to form an export cooperative follows the announcement by the China's Ministry of Commerce on Friday on the license requirement to export indium metals with 99.993% indium content or higher. The 99.99% metals have been excluded from the regulation.
The MOC announcement said all exporters, including trading firms, are required to have registered capital of at least Yuan 70 million ($9 million).
Japanese and Chinese trade sources agreed that a major Chinese trading firm China Minmetals Corp would be one of the few trading firms who would be eligible to export under the new system. Most trading firms in China are capitalized at less than Yuan 70 million.
"This is unfair," said a metal trader based in southern China whose company is capitalized at less than Yuan 20 million. "The new policy would only protect national company's interests," he said.
Another trade source said some export firms were discussing to set up an export cooperative collectively to win the license.
The MOC announcement said local governments in the provincial level were required to submit a list of eligible indium exporters this coming Friday [March 16] to China's Ministry of Commerce, China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters, and China Nonferrous Metals Industry Association. These organizations will review the exporters' lists, and submit them to the Ministry of Commerce before March 20.
"Ministry reviews and the system would put into effect possibly in April," said the source.
Under this schedule, traders planning to launch an export cooperative are given only a few days to organize themselves, which would be difficult to achieve.
Chinese and Japanese trade sources, however, added that the new MOC policy is only a tentative measure and could change.
The governments at provincial and smaller municipality levels do not necessarily support the MOC policy, the first Chinese trader said.
"Closure of indium plants means reduced tax income and higher unemployment," he said.
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