In the morning on the 13th, shares of rare earth-related stocks, a semiconductor raw material, are surging. Buying is believed to be rushing in on news that China has tightened controls on rare earth exports ahead of a summit with the United States.
As of 9:17 a.m. on the 13th, Union Materials is trading at 2,210 won on the main bourse, up 507 won (29.77%) from the previous session. Union Materials produces "ferrite magnets," known as a substitute material for rare earths.
Union Materials' parent company Union (21.3%), Novatech (19.6%), Samwha Electronics (10.29%), Dongkuk R&S (15.26%), and TPLEX (13.53%) are also all posting double-digit percentage (%) gains in their share prices.
Earlier, China's Ministry of Commerce announced on the 9th, through the "decision to control exports of rare earth materials outside the territory (overseas)," that it would tighten controls on rare earth exports, which is seen as fueling expectations that related corporations will benefit as a byproduct.
Rare earths are rare metals essential for semiconductors and industrial magnets. Most of the world's rare earth production is produced in China. Each time U.S.-China trade tensions escalate, rare earth prices have trended higher.