Gov't to stockpile scrap metal to cope with global price fluctuations

SEOUL, March 12 (Yonhap) -- The government said Thursday it plans to stockpile scrap metal to help insulate local businesses from global price fluctuations.

The move is the first for South Korea and comes in response to the unpredictable
rise in prices for the important material, the Ministry of Knowledge Economy
said.
Prices for 1 kilogram of scrap metal soared to 500 won (US$0.3) last July before
plummeting to just 72 won in December. Such changes make it hard for companies to
plan ahead and adversely affect overall business operations.
"Industry experts think a stockpile of 500,000 tons will be needed for the
country, but the lack of state funds may only permit 150,000 tons to be set
aside," a ministry official said. The government has set aside 50 billion won in
the supplementary budget to push the project forward, he said.
The government wants lawmakers to approve the extra budget in April.
The ministry in charge of country's industrial policies and resources management
also said talks have been held with local steel mills such as POSCO, Dongkuk
Steel Mill Co. and Hyundai Steel to work out details and determine where to put
the stockpile.
It said the scrap metal could be stored on land controlled by regional port
agencies or near commercial steel mills.