Corporate Logo(source: poscochemical.com)
Shares of companies linked to rare earths and batteries surged on October 13 after China announced tighter export controls, reigniting U.S.-China trade tensions.
According to the Korea Exchange, Union Materials (047400) jumped 29.77% to close at 2,210 won. The stock had already hit its upper price limit on October 10, the previous trading day.
Other rare-earth-related stocks also rallied sharply, with Seongan Materials (011300) soaring 29.93%, Dongkuk R&S (075970) up 16.91%, and Union (000910) gaining 20.90%.
Battery-related stocks advanced as well, with POSCO Future M (003670) rising 7.79%.
The rally followed China’s announcement that it would strengthen export controls on rare earths and lithium-ion batteries, boosting expectations that related Korean companies would benefit.
On October 9, China said it would tighten restrictions on rare earth exports. In response, U.S. President Donald Trump announced on October 10 (local time) plans to impose an additional 100% tariff on Chinese goods.
However, amid growing concerns over renewed U.S.-China trade frictions, President Trump took a conciliatory tone on October 12 via his social media platform Truth Social, saying, “President Xi (Jinping), whom I greatly respect, just went through a rough moment. He doesn’t want his country to face a recession, and neither do I.”
Despite the softer rhetoric, Hong Kong’s Ming Pao reported that China plans to implement new export restrictions on advanced lithium-ion batteries starting November 8, following its earlier rare earth controls.
Analysts viewed the latest trade flare-up as a strategic move by both nations to gain leverage ahead of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju later this month and the expiration of the second “tariff truce” next month.
Park Soo-hyun, analyst at KB Securities, said, “Just like the U.S. uses tariffs, China’s rare earth measures are negotiation tools, not end goals. While the power struggle may continue, Beijing is likely to announce a temporary suspension of export controls to avoid disruptions in U.S. semiconductor, defense, and electronics manufacturing.”
Jeon Jong-gyu, analyst at Samsung Securities, added, “A prolonged U.S.-China dispute would be disastrous for both sides’ core interests. President Trump needs a trade deal ahead of next year’s midterm elections, while President Xi must mitigate external shocks that could worsen China’s structural economic slowdown.”
He concluded, “Neither country can remain immune to the negative impacts of tariff escalation on financial markets and the real economy. Our base-case scenario remains one of gradual negotiation progress leading to a second-phase trade agreement.”
*[KOSPI] POSCO Future M(003670) is a POSCO Group-affiliated materials company that manufactures and sells secondary battery materials, advanced chemical materials, and basic industrial materials, including cathode and cathode materials for secondary batteries, carbon material raw materials and products, refractories, and quicklime. do. The market capitalization is 14.03 trillion won (as of October 13, 2025, closing price).
Corporate Logo(source: poscochemical.com)
Shares of companies linked to rare earths and batteries surged on October 13 after China announced tighter export controls, reigniting U.S.-China trade tensions.
According to the Korea Exchange, Union Materials (047400) jumped 29.77% to close at 2,210 won. The stock had already hit its upper price limit on October 10, the previous trading day.
Other rare-earth-related stocks also rallied sharply, with Seongan Materials (011300) soaring 29.93%, Dongkuk R&S (075970) up 16.91%, and Union (000910) gaining 20.90%.
Battery-related stocks advanced as well, with POSCO Future M (003670) rising 7.79%.
The rally followed China’s announcement that it would strengthen export controls on rare earths and lithium-ion batteries, boosting expectations that related Korean companies would benefit.
On October 9, China said it would tighten restrictions on rare earth exports. In response, U.S. President Donald Trump announced on October 10 (local time) plans to impose an additional 100% tariff on Chinese goods.
However, amid growing concerns over renewed U.S.-China trade frictions, President Trump took a conciliatory tone on October 12 via his social media platform Truth Social, saying, “President Xi (Jinping), whom I greatly respect, just went through a rough moment. He doesn’t want his country to face a recession, and neither do I.”
Despite the softer rhetoric, Hong Kong’s Ming Pao reported that China plans to implement new export restrictions on advanced lithium-ion batteries starting November 8, following its earlier rare earth controls.
Analysts viewed the latest trade flare-up as a strategic move by both nations to gain leverage ahead of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju later this month and the expiration of the second “tariff truce” next month.
Park Soo-hyun, analyst at KB Securities, said, “Just like the U.S. uses tariffs, China’s rare earth measures are negotiation tools, not end goals. While the power struggle may continue, Beijing is likely to announce a temporary suspension of export controls to avoid disruptions in U.S. semiconductor, defense, and electronics manufacturing.”
Jeon Jong-gyu, analyst at Samsung Securities, added, “A prolonged U.S.-China dispute would be disastrous for both sides’ core interests. President Trump needs a trade deal ahead of next year’s midterm elections, while President Xi must mitigate external shocks that could worsen China’s structural economic slowdown.”
He concluded, “Neither country can remain immune to the negative impacts of tariff escalation on financial markets and the real economy. Our base-case scenario remains one of gradual negotiation progress leading to a second-phase trade agreement.”
*[KOSPI] POSCO Future M(003670) is a POSCO Group-affiliated materials company that manufactures and sells secondary battery materials, advanced chemical materials, and basic industrial materials, including cathode and cathode materials for secondary batteries, carbon material raw materials and products, refractories, and quicklime. do. The market capitalization is 14.03 trillion won (as of October 13, 2025, closing price).