Source: Reuters (via feed)
CME Group is considering launching the world’s first futures contract in rare earth metals, Reuters reported. The contract would combine neodymium and praseodymium, two key rare earth elements used in various technologies. This move aims to provide governments, companies, and financial institutions with a way to hedge their exposure in a market mainly controlled by China.
The introduction of this futures contract could create a transparent pricing benchmark for rare earths. CME is in the exploratory phase and has not set a launch date. The rare earth sector is critical for several industries, including electric vehicles and electronics, which rely on these metals.
This step reflects growing global interest in diversifying rare earth supply chains. Meanwhile, market participants remain attentive to how the contract could impact trade and risk management. The proposal shows CME’s focus on addressing needs in emerging markets and sectors.
Launching rare earth futures would offer financial tools to manage risk in a market dominated by China, influencing supply chain strategies and commodity pricing.
