[Featured Stock] Union Material, Soaring Rare Earth Prices in China... Rising Expectations for Substitute Market Share Increase

[Asia Economy Reporter Jang Hyowon] Union Material is showing strong performance. The news of a sharp rise in rare earth prices in China has drawn attention to the fact that the company produces ferrite magnets, known as alternatives.

As of 9:29 AM on the 3rd, Union Material is trading at 2,670 KRW, up 0.95% from the previous day.

According to the industry, rare earth prices in China have surged more than 31% over the past three months. China is the world's largest producer of rare earths.

Rare earths are essential materials for manufacturing permanent magnets. They are representative strategic resources most needed for producing smartphones, secondary batteries, and more. Amid recent moves to weaponize resources, competition to secure rare earths is fierce. Rare earths are at the center of strategic competition between the United States and China.

Union Material is a company that produces ferrite magnets, considered alternatives to rare earth magnets. Ferrite magnets are attracting attention as products that can replace neodymium magnets, which use rare earths, as materials for motors and compressors in automotive electronics.