Japan aims to take advantage of a price decline to roughly double its national stockpile of minor metals, but it does not expect its purchases to be a factor in driving up prices in the long term given current slow demand and high stocks.

The move is part of a broad review of the nation's stockpile, set up in 1983, which will add two new metals -- indium and gallium -- to the seven currently held.

Japan has earmarked 5.8 billion yen ($60.68 million) from this year's budget to buy and boost its stockpile to an average of 42 days worth of metal, a target it has always had but never achieved due to worries that buying at a high price would disrupt the market. It currently has an average 19.5 days worth of metal in the stockpile. "It would be timely to buy now because prices have come down," Yoshinori Yajima, director at the Ministry of Economy, Trade and Industry's Mineral and Natural Resources Division, said.

Japan currently holds chrome, cobalt, manganese, nickel, tungsten, molybdenum and vanadium in the stockpile, which is managed by state-affiliated Japan Oil, Gas and Metals National Corp (JOGMEC). Nickel is defined as a minor metal in Japan.

Yajima said he believes there may be some speculative moves in the market because of Japan's plan to strengthen its national metals stockpile.
But after studying the situation, the ministry concluded that buying by Japan was not going to cause a wild scramble for metals.