[Exclusive] Aluminum and Tin Operational Stockpiles Halved in Three Months

As international raw material prices fluctuate due to the prolonged Middle East war, government-held non-ferrous metal stockpiles are being depleted at a rapid pace. In particular, concerns have been raised that inventory levels of aluminum-a key material-are significantly below target, potentially undermining market stabilization efforts.

According to data obtained by The Asia Business Daily on April 27 from the office of Park Sunghoon, a lawmaker of the People Power Party and member of the National Assembly's Planning and Finance Committee, the Public Procurement Service’s report on “Status of Stockpiled Materials” showed that, as of March this year, aluminum operational inventory was short by 7.4 days compared to the target days of reserve. This represents a 2.3-fold increase in the deficit compared to the end of last year (-3.2 days), with actual holdings amounting to only about 40% of the target. Aluminum is a core national strategic resource used in electric vehicle batteries and automotive lightweighting.

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Aluminum operational inventory had improved over the past five years-standing at -10 days in 2022, -9 days in 2023, -8 days in 2024, and -3.2 days in 2025-but has sharply deteriorated due to the Middle East war. During the same period, the deficit for tin increased from -3.7 days to -8.6 days, and for zinc, from -7.5 days to -8.6 days. Copper showed some improvement but still failed to meet the target. Only two metals-lead (from 2.6 days to 1.2 days) and nickel (from 7.3 days to 12.5 days)-maintained stockpiles above their targets.

Operational inventory refers to the volume retained by the Public Procurement Service for sale or lease to small and medium-sized enterprises, serving to moderate market price volatility. The recent sharp decline in stockpiles is attributed to increased demand from companies seeking to secure relatively inexpensive and stable government reserves, as international supply chain disruptions have destabilized prices. As of April 12, total inventory for the six major non-ferrous metals held by the Public Procurement Service had decreased by about 6,200 tons compared to the end of last year.

Since mid-March, the Public Procurement Service has reduced the quota for aluminum releases by 20% compared to previous limits. A spokesperson for the agency stated, "In the case of certain raw materials, increased purchases of government stockpiles have been observed due to supply and demand effects stemming from the Middle East war. Considering the time lag from the sequential arrival of contracts signed at the beginning of the year, we view this as a temporary trend. There are no disruptions in securing the planned supply volumes."

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