China Holds Top Global Market Share
Retaliates with Indium Export Controls
South Korea Accounts for 29% of U.S. Indium Imports
Potential to Emerge as Alternative Supply Chain
Bismuth Exports to U.S. Also Expected to Increase
Korea Zinc, the largest non-ferrous metal smelting company in South Korea, is expected to become a 'safe zone' from the tariff policies of the second Trump administration. This is because China has implemented export controls on rare metals such as indium in response to U.S. tariff impositions, increasing the likelihood that Korea Zinc will emerge as an alternative supply chain.
According to industry sources on the 18th, Korea Zinc produces approximately 150 tons of indium annually. Indium is a material essential for advanced industries such as flat-panel displays, solar panels, 5G networks, and AI (artificial intelligence) semiconductors. As of last year, China accounted for about half of the global market, which is around 1,400 tons. Korea Zinc has been responsible for about 11% of global demand.
However, this month, China, hit by a tariff bomb from the second Trump administration, retaliated by imposing export controls on indium, making changes to the existing global supply chain inevitable. For advanced companies that need to secure indium supplies, securing volume has become urgent.
In the past, when China's indium supply was disrupted, the market experienced significant volatility. Prices soared due to unstable supply and demand. Last year, when intermittent supply controls were implemented, the average price of indium was $317 per kilogram, a 41.5% increase compared to the previous year. Additional price increases are expected this year amid the U.S.-China tariff war.
The market expects Korea Zinc to emerge as an alternative supply chain to China. In particular, Korea Zinc accounts for about 30% of the U.S. indium supply chain. According to a report published this year by the U.S. Geological Survey (USGS), South Korea was the largest importer of indium to the U.S. from 2020 to 2023, accounting for 29% of imports.
Korea Zinc anticipates that dependence on indium in the U.S. will increase further due to China's export control measures. A company official stated, "There will likely be additional export discussions with the U.S. side regarding rare metals such as indium and antimony." Previously, when China imposed export controls on antimony last year, Korea Zinc decided to gradually increase its exports to the U.S. starting early this year. As of last year, Korea Zinc produced 3,604 tons of antimony annually, selling about 30% of it overseas.
The proportion of exports to the U.S. of bismuth, which China has also controlled alongside indium, is expected to increase. When the first Trump administration imposed tariffs on Chinese bismuth in 2018, South Korea's exports to the U.S. also increased significantly. Korea Zinc produces and supplies about 900 to 1,000 tons of bismuth annually, and as of last year, the U.S. accounted for 23% of its imports, the second largest after China (67%) worldwide.
However, the growing threat of 'Trump-style' tariffs remains a key issue. President Donald Trump is currently considering imposing tariffs on all imports worldwide regardless of country or product. There are concerns that metals could be targeted in the future. Korea Zinc, however, stated, "If tariffs are imposed on rare metals such as indium and bismuth, it could further negatively impact the already unstable supply and demand caused by the tariff war with China," adding, "We believe the possibility of tariff imposition is low."
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