Non-ferrous metals, often called the ‘roots of manufacturing’, are establishing themselves as a hidden powerhouse in the age of artificial intelligence (AI). If semiconductors are the lead actor riding a supercycle amid the AI boom, non-ferrous metals play the supporting role that underpins them. The domestic non-ferrous metals industry is also recognized for high-level smelting capabilities and product output.

On the 2nd, the Ministry of Trade, Industry and Energy held a ceremony marking the ‘19th Non-ferrous Metals Day’ at the LSMnM Onsan smelter in Ulju-gun, Ulsan. The government awarded a Presidential Citation to Jo In-rae, an LSMnM team leader, recognizing contributions to supply chain stability by increasing smelting volumes of copper concentrate and copper scrap through facility upgrades and process optimization. A total of 18 people, including Team Leader Jo, received government commendations.

Non-ferrous metals is a term that collectively refers to metals other than iron. Representative examples include gold, silver, copper, lead, zinc, tin, mercury, nickel, and tungsten. They serve as key materials across manufacturing and industry at large.

Even as industry faced difficulties due to the Middle East situation, non-ferrous metals maintained solid growth. According to May trade figures released the previous day by the Ministry of Trade, Industry and Energy, non-ferrous metal exports reached $1.67 billion, up 41.5% from May last year. This is the highest monthly performance on record.

The reason is the AI data center boom, centered on the United States. The Ministry of Trade, Industry and Energy explained that “expansion of AI data centers has increased demand for copper and aluminum, leading to strong results.” In particular, copper is a key resource for installing the extra-high-voltage grids needed to run data centers.

According to the Korea Non-ferrous Metals Association, the average monthly price of copper traded on the London Metal Exchange (LME) jumped from $9,192.13 per ton in April last year to $12,891.38 this April. That is a 40.2% increase in one year. Over the same period, aluminum rose from $2,381.25 to $3,600.63 per ton, up 51.2%.

South Korea has world-class non-ferrous metal smelting technology. It is rated highly for low impurities and excellent thermal and electrical conductivity. This is why Korean non-ferrous metals are used in building AI data centers.

Industry leader Korea Zinc posted sales of 6.072 trillion won in the first quarter of this year. Operating profit was 746.1 billion won. Compared with the first quarter of last year, sales rose 58.4% and operating profit 175.2%. These are the highest results on record. Korea Zinc also achieved 105 consecutive profitable quarters.

Recently, it also received the top grade across all areas for eight consecutive months in the QualityScore, the environmental, social, and governance (ESG) management assessment by ISS, the world's largest proxy advisory firm.

Yang Ki-uk, head of the Office of Industrial Resource Security at the Ministry of Trade, Industry and Energy, stated that “the non-ferrous metals industry is the foundation of Korean manufacturing and a core asset for the future,” adding that “it has driven export growth even under challenging conditions, such as U.S. tariffs on aluminum and copper.” The Ministry of Trade, Industry and Energy said it will concentrate on advancing the non-ferrous metals industry by expanding public stockpiles, building stable supply chains, and securing high value-added materials such as special alloys and high-purity rare metals in connection with downstream demand industries.