Government: "Short-term Impact of China's Mineral Export Controls Limited... Exploring Alternative Import Sources"

Six Months' Supply of Tungsten and Three Months' Supply of Molybdenum Secured
Indium, Bismuth, and Tellurium Can Be Addressed Through Domestic Production

As China controls the export of semiconductor material minerals in retaliation against the Trump administration's additional 10% tariff imposition, it is analyzed that the short-term impact on South Korea will be limited.

According to the results of the domestic industry impact assessment on five Chinese export control items conducted by the Ministry of Trade, Industry and Energy on the 5th, tungsten is secured with about six months' worth of supply, combining private stockpiles and public reserves (over 50 days). Currently, tungsten scrap is recycled domestically to produce some amount.

Molybdenum also has more than three months' worth of supply, including public reserves (over 40 days), so short-term response seems possible. However, based on last year's import value, tungsten's dependence on imports from China is 85%, and molybdenum's is over 90%, so the Ministry of Trade, Industry and Energy judged that it is necessary to expand the search for alternative import sources.

Indium, bismuth, and tellurium can be addressed through domestic production, so the impact is limited. As of 2023, South Korea ranks second globally in production of indium after China, bismuth is produced domestically as a byproduct of lead smelting by local companies, allowing for alternative domestic procurement in case of supply disruption. Tellurium is also produced domestically, and alternative imports from countries such as Canada are possible.

China's export controls target five items?tungsten, molybdenum, indium, bismuth, and tellurium?and 25 products and related technologies mainly used in alloys and compounds for semiconductors and displays. The Chinese export control adds an export licensing procedure rather than an export ban, so, like existing controlled items such as graphite and gallium, domestic import is possible after export approval by the Chinese Ministry of Commerce (statutory deadline of 45 days).

The Ministry of Trade, Industry and Energy held an 'Industrial Supply Chain Inspection Meeting' chaired by Na Seong-hwa, Director of Industrial Supply Chain Policy, to share these details with related agencies and companies and agreed to cooperate closely to respond meticulously to prevent any future supply disruptions.

Director Na said, "While closely managing each item to prevent supply disruptions of export-controlled items, we will steadily implement supply chain stabilization measures such as self-reliance, diversification, and resource securing, and swiftly expand mid- to long-term response capabilities."

This content was produced with the assistance of AI translation services.