Korea Zinc says it will prioritise domestic sales if production at rival drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2024
0mins
Source: Yahoo Finance
- Korea Zinc's Priority: Korea Zinc, the world's largest zinc producer, plans to prioritize domestic sales over exports in case of a significant drop in South Korean smelting production.
- Zinc Production Concerns: Traders are closely monitoring South Korea's zinc exports following production cuts at Young Poong, the country's second-largest producer, due to financial challenges and rising costs.
- Market Dynamics: South Korean demand for zinc is around 470,000 tons per year, with Korea Zinc and Young Poong supplying most of it. Korea Zinc aims to produce 650,000 tons in 2024.
- Global Impact: Weak global construction activity has led to a 20% decrease in zinc prices, resulting in suspensions of zinc mines and smelters worldwide.
- Company Strategies: Korea Zinc is diversifying its business by expanding into metal recycling and acquiring U.S.-based scrap metal trader Kataman Metals, while also preparing for potential changes in sales and procurement partnerships with Young Poong.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
