As copper prices reach a two-year high, Poongsan, which owns related business divisions, has also hit a 52-week high again.
As of 9:53 a.m. on the 14th, Poongsan is trading at 77,300 KRW, up 1,800 KRW (2.38%) from the previous session on the KOSPI market. The trading volume is about 280,000 shares, with a trading value of approximately 22 billion KRW.
The stock price surged to 78,100 KRW at the start of the day before giving back some of the gains. During the session, it recorded an intraday high of 78,900 KRW, setting a new 52-week high again.
The driving force behind the rising stock price is the upward trend in copper prices. Expectations of price increases for copper and copper alloy products processed by Poongsan’s main business division, the non-ferrous metals sector, are pushing the stock price higher.
On the London Metal Exchange (LME), the spot price of copper stood at $10,082.40 as of the 13th. This is more than $2,000 higher than the level of around $8,100 at the beginning of this year. It is the highest level since January 2022, when it was around $10,700.
In fact, all domestic copper-related Exchange Traded Notes (ETNs) are also on the rise. Four types of leveraged futures ETNs, including the 'KB Leverage Copper Futures ETN,' have all hit new 52-week highs again. The stock price increase rate is also over 5% on this day.
It is expected that if copper demand increases in the electric vehicle, artificial intelligence (AI), and automation sectors in the future, a supply shortage will occur. With the dawn of the AI era, large-scale communication infrastructure data centers being built by big tech companies also require a significant amount of copper.
According to foreign media, a copper trader said, "The demand story is still at the forefront, and fund money continues to flow in," adding, "Optimism about the possibility of a U.S. interest rate cut is also fueling investor sentiment."
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