16:17 23Mar2007 RTRS-UPDATE 1-S.Korea seeks metals on tight warehouse
stocks
(Recasts, adds comment and table)
SEOUL, March 23 (Reuters) - South Korea is actively buying
industrial metals such as aluminium and copper due to tight
state-controlled stockpiles.
The country's state-run Public Procurement Services issued a tender
on Friday to buy 5,000 tonnes of copper cathode.
The PPS is also seeking 5,000 tonnes of primary aluminium ingot, 120
tonnes of tin ingot and 300 tonnes of nickel cathodes.
"Inventories have fallen to low level as we did not buy enough
metals last year, alarmed by rocketing prices," said an official at the
agency.
The PPS, responsible for building reserve stockpiles of 16 types of
raw materials for local small and medium-sized companies, usually
focuses on buying metals when global prices are low and releasing them
when prices are high to help ease the pressure on industry from rising
prices.
"Metal prices are still high but we cannot delay the purchase of
metals forever. We will rebuild stocks this year."
The agency already bought 11,000 tonnes of copper cathode, 9,000
tonnes of primary aluminium ingot and 4,000 tonnes of zinc so far this
year.
The country plans to raise its raw material purchases for reserves -
mainly non-ferrous metals - by 54 percent to 500 billion won ($532.7
million) in 2007.
It did not give the detailed amount of purchases for each raw
material.
Last year, it only spent 324 billion won on industrial metals.
The PPS has four warehouses located at the ports of Inchon, Pusan,
Mokpo and Kunsan, and has provided metals to small-sized companies with
prices 3 to 5 percent lower than market prices.
Details of tenders scheduled next week as follows:
-- COPPER CATHODE (MARCH 29)
TONNE ORIGIN SHIPMENT PORT
3,000 Optional May 15 Inchon
2,000 Optional May 31 Inchon
-- TIN INGOT (MARCH 29)
TONNE ORIGIN PORT
20 Optioanl Pusan
80 Optional Inchon
20 Optional Pusan
* Delivery is scheduled to take place within a month of receiving a
letter of credit
-- NICKEL CATHODE (MARCH 29)
TONNE ORIGIN PORT
50 Optional Pusan
50 Optional Inchon
* Delivery is scheduled to take place within a month of receiving a
letter of credit
-- NICKEL CATHODE (MARCH 26)
TONNE ORIGIN PORT
100 Optional Pusan
100 Optional Inchon
* Delivery is scheduled to take place within a month of receiving a
letter of credit
-- ALUMINIUM INGOT (MARCH 28)
TONNE ORIGIN SHIPMENT PORT
2,000 Non-Western May 16 Inchon
1,000 Non-Western June 20 Inchon
1,000 Western April 18 Pusan
1,000 Western May 16 Inchon
($1=938.6 won)
((Reporting by Kang Shinhye, editing by Ben Tan; Reuters
Messaging: [EMAIL PROTECTED]; +82 2
3704-5651))
