As trade tensions between the United States and China drive up rare metal prices, forecasts indicate that domestic refining companies may benefit. Rare metal prices have surged as the Chinese government restricts exports in response to U.S. tariffs.
According to the refining industry on the 13th, the price of bismuth, used in semiconductors and other applications, has risen by 277% compared to the end of last year, reaching $45,151 per ton as of the 7th. Antimony prices also recorded $25,275 per ton as of the 3rd, a 14% increase from the end of last year. The price of indium rose 3% during the same period, reaching $372,500 per ton, while the futures price of tellurium increased by 8% to $695,000 per ton.
These rare metals are essential for manufacturing semiconductors, batteries, and advanced weaponry. Bismuth is used in the production of bulletproof glass and ammunition, while antimony is used in ammunition, batteries, and machine bearings. Indium is utilized in the manufacturing of semiconductors and displays, and tellurium is used in the production of solar cells and semiconductors.
Rare metals are seeing rising prices as demand increases due to factors like the Russia-Ukraine war, along with China, the world's largest producer, restricting exports. Antimony, which accounts for 30% of global supply, has been under export controls since September last year. Last month, China announced export control measures for indium, bismuth, tellurium, and molybdenum in response to tariffs from the Trump administration. China provides 60% of the world's bismuth and indium supply and approximately 50% of the tellurium supply.
Korea Zinc produced rare metals such as bismuth, tellurium, indium, and antimony and reported revenues of 181 billion won last year. Korea Zinc produces 150 tons of indium, 1,000 tons of bismuth, and 200 tons of tellurium annually. LS MNM is also reported to generate hundreds of millions of won in sales by producing 50 tons of tellurium each year.
Rare metals are extracted from byproducts of the copper refining process, making the profit margins high. As of the fourth quarter of last year, Korea Zinc's rare metal business segment posted a gross profit margin of 74%. Lee Tae-hwan from DAISHIN SECURITIES noted, "The rare metal business is a high-margin venture" and remarked that "the lower copper refining fees may offset some of the anticipated downturn in this year's performance."
An industry insider said, "We are continuously researching and developing technologies related to rare metals to enhance profitability. By advancing rare metal extraction technology, we will be able to produce more rare metals from byproducts."