Korean Metal Makers Rebound as Global Copper Prices Reach Record Highs

Korean nonferrous metal makers are seeing a turnaround in profits due to soaring global copper prices, which have reached record highs. According to the London Metal Exchange (LME), the average spot price of copper in the first half of this year was $13,088 per ton, up 39% from $9,432 in the same period last year.

The spread of Artificial Intelligence Data Centers (AIDCs) is driving demand for copper, as these centers require large-scale power infrastructure that uses significant amounts of copper. Electric vehicles also use more copper than internal combustion cars, further increasing demand.

Daechang, a nonferrous metal maker, posted second-quarter consolidated revenue of 496.8 billion won ($358 million), up 47% from a year earlier. Operating profit came to 22.4 billion won, swinging into the black from an operating loss of 8.5 billion won a year earlier.

Kukil Metal and KBI Metal also reported increased revenue and profits in the second quarter due to higher copper prices. However, some industry officials warn that if prices climb too far, demand in downstream industries could shrink as buyers turn to substitutes like stainless steel.