Eugene Investment & Securities said on the 15th that Korea Zinc is expected to benefit the most from its competitors'struggles due to power shortages in Europe and China.
It maintained its "buy" investment opinion and raised its target stock price to 710,000 won.
"China's zinc smelting industry may have suffered production disruptions due to severe power shortages in September," Eugene Investment & Securities said. "It will also cut Nrstar, Europe's largest zinc refiner, by 50%, which could be 2.4% of global zinc smelting production.".
"Zinc smelting is an industry with high power consumption and is vulnerable to soaring energy prices," Eugene Investment & Securities said. "Korea Zinc has 650,000 tons in Korea annually and 220,000 tons of zinc production capacity (CAPA) in Australia's connected subsidiary SMC.".
Eugene Investment & Securities added, "In the first seven months of July, global zinc refining output increased 10% year-on-year, while smelting production increased only 4.4%.".
Reporter Lee Ji-sun stockmk2020@gmail.com
