The domestic industrial sector is making efforts to manage the supply of the rare metal antimony. Antimony, used as a key material in major industry sectors like automotive steel plates, semiconductors, batteries, and defense, has seen concerns over supply shortages persist since China imposed export controls last year.
According to industry sources on the 6th, recent efforts by Hyundai Steel and POSCO have focused on strengthening the monitoring of antimony supply. They have reportedly checked for any supply disruptions from Korea Zinc, the only producer of antimony in Korea, and have visited the Onsan smelter directly.
Currently, there is no shortage of antimony supply in Korea, but some corporations are emerging that seek to secure stocks in advance in preparation for potential supply difficulties. In addition to steel companies, inquiries for additional purchases are also coming from the battery industry.
Antimony is present in trace amounts in lead ore (metal ore with impurities initially removed). It is primarily used as a flame retardant to prevent objects from igniting and is effectively applied as an essential auxiliary material in steelmaking processes in Korea. It is used in the manufacture of high-strength special steel, automotive steel plates, semiconductor and battery protective materials, and military weapons.
Since China began controlling its antimony exports in September last year, a supply shortage has persisted in the global market. China is the largest holder and producer of antimony, with reserves as of 2023 estimated at 640,000 tons, accounting for about 30% of global reserves, and an annual production of around 40,000 tons, roughly half of the world's annual output.
Starting in 2023, China has been controlling the export of rare metals and rare earth elements that have high global market dependence in response to U.S. technology sanctions. China controlled graphite exports at the end of 2023 and began controlling antimony exports from September of the following year. This move is aimed at taking advantage of the increasing demand for semiconductors and batteries, as well as its use in military weapon materials such as infrared radar and missiles.
In recent years, the price of antimony has surged dramatically. At the end of 2023, antimony was trading at around $10,000 per ton, while last month it traded at about $40,000 (approximately 57.84 million won) at the Rotterdam Commodity Exchange. The price exceeded $45,000 at the end of last year.
The annual demand for antimony in Korea stands at about 4,000 tons, with Korea Zinc accounting for roughly half of this. The remainder is imported from countries such as China, Thailand, and Vietnam, with China being the largest source. According to the Ministry of Trade, Industry and Energy, in 2023, imports of antimony amounted to $59.2 million, with China contributing $43.8 million, or about 74%. Korea Zinc's annual production of antimony is approximately 3,500 tons, with 70% for domestic use and 30% for export. Last year's production increased by 14.5% year-on-year to 3,604 tons. As antimony prices soared, related revenues are estimated to have increased by more than 80% during the same period.
Korea Zinc plans to increase production of antimony and other rare metals and expand domestic supply shares to prevent supply disruptions in response to future supply situations. On the 4th, China added tungsten, tellurium, bismuth, molybdenum, and indium to the list of exports controlled in response to U.S. tariffs, among which tellurium, bismuth, and indium are exclusively produced domestically by Korea Zinc.
Korea Zinc is also considering exporting antimony to the United States. Starting with 350 tons, which is 10% of its annual production, it plans to increase exports to the U.S. The U.S. is one of the countries with high dependence on Chinese-made antimony, with 62% of its antimony imports (approximately 14,000 tons) last year coming from China.