South Korea, the fourth-largest economy in Asia, is a large consumer of metal. It is home to the world’s largest shipbuilder, memory chip maker, and fourth-largest steel mill.
It will increase its reserve stockpiles on 12 products, including copper, aluminium and nickel. The new reserves will cater for 60 days as opposed to 19. Stockpiles will also cover an additional 10 materials.
Lacking the natural resources, South Korea is heavily dependent on copper, zinc, nickel, lead and iron imports.
The increase in stockpiles will help companies in their struggles to secure industrial raw materials. It is hoped this will stabilise supply and demand.
The country will also create scrap metal processing firms to help with supplies of feedstock.