Inner Mongolia Baotou to start rare earth trading platform

China's Inner Mongolia Baotou Steel Rare-Earth (600111.SHA) will launch a physical trading platform for the rare earth minerals on August 8, The Wall Street Journal reported. Baotou, China's largest producer of rare earths by volume, is coordinating 10 other firms to set up the platform, according to Chinese media reports Thursday that cited a newsletter on the company's website. The newsletter said the exchange will be in Baotou city in Inner Mongolia, where nearly half of world's rare earth minerals are produced. While the new trading platform could help make the rare earths market more transparent, it could also give China a heavy advantage in controlling the market and setting prices. China has thus far controlled rare earth prices through export quotas, but that has resulted in a WTO trade complaint from the US, Europe and Japan.