[Market Focus] Korea Zinc Surges 11% on China Rare Earth Export Controls

Operating Profit in Rare Metals Segment Expected to Surge

Korea Zinc's stock price is surging. This appears to be driven by expectations that the company could benefit from rising rare metal prices as China tightens its controls on rare earth exports.

As of 10:09 a.m. on October 13, Korea Zinc's stock price stood at 1,072,000 won, up 11.1% from the previous day.

The company has been expanding its rare metal portfolio, and with China announcing new rare earth export control measures amid the ongoing U.S.-China trade dispute, rare metal prices are expected to rise. Korea Zinc produces not only non-ferrous metals such as zinc, lead, and copper, but also precious metals like gold and silver, as well as rare metals such as antimony, indium, and bismuth.

As a result, there is growing anticipation that operating profit from the rare metals segment-which stood in the 100 billion won range last year-could increase significantly. Some even predict it could reach as much as 500 billion won.

Kim Jinbeom, a researcher at SangSangin Securities, stated in a report released today, "The weekly return for the non-ferrous metals sector was 3.1%, with Korea Zinc's strong performance (5.0%) standing out in particular," adding, "This is due to the Chinese government's announcement of expanded rare earth export controls."