Korea Zinc Shares Rise 2% on News of Non-ferrous Metal Price Increases

SEOUL, KOREA- Lately non-ferrous metal shares have been on the rise on the back of a rise in prices for non-ferrous metals such as gold, silver, zinc, and copper.At 9:28 am on August 16, the shares of Korea Zinc were traded at 312,500 won, up 2.97 percent from the previous day's 303,500 won. The share prices of other major non-ferrous metal companies have also shown an upward trend including Young Poong (1.05%) and Poongsan Corp. (0.57%).

Stock analysts attributed the rise to a recent surge in international prices of non-ferrous metals such as gold, silver, and zinc, which buoyed the investors' confidence. On the 15th, the gold price for December delivery on the New York Mercantile Exchange closed at US$1,360.90 per ounce, up 2.0 percent from the previous day's $1,333.40.

Choi Moon-sun, analyst with Korea Investment & Securities, said, "Last week the price rise for zinc was higher than that for copper (3.8%). In general, copper price fluctuates more during times of business cycle change. But this time around zinc price rose more because the demand for zinc was stronger. As there are sufficient reasons for believing the supply for copper will increase, it is more likely zinc price to rise relative to that for copper, which leads us to recommend that Korea Zinc is an attractive buy in the near future."

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