Germany sets up commodities advisory agency

HAMBURG Oct 4 (Reuters) - The German government said on Monday it has set up a commodity advisory agency to assist companies find raw materials supplies.

The Federal Institute for Geosciences and Natural Resources, part of the Economy Ministry, said it would operate the agency which would be specially aimed at helping small and medium sized companies to find sufficient raw materials.

A data bank covering global supplies of all commodities will be set up which will have a major focus on minor metals, it said.

The aim is to ensure that German companies are not hampered by commodity shortages when developing new products, the Hanover-based institute said.

The move was welcomed by the association of German industry BDI, which said in a statement commodity procurement was becoming increasingly difficult because of trade barriers such as export restrictions.

"The establishment of the new commodities agency is an important element in our national raw materials strategy," said Ulrich Grillo, chairman of the BDI's commodity section in a statement. "It will deliver concrete support for the supply of commodities for industry."

(Reporting by Michael Hogan; Editing by William Hardy)