Market conditions in both Australia and New Zealand remain somewhat subdued with a combination of slowing economies, a pessimistic outlook and it being the middle of winter.
The price of milk, New Zealand’s largest export, has been on a downward trend for several months, but there is a hope that conditions will improve. The economic outlook has showed further slowing, with GDP growth now under 2% and at its lowest since the September quarter in 2009.
Domestic consumers are buying at current levels, although there has been a drop-off in demand from some. Traditional offshore markets remain complex, with discounts widening or demand weakening for some metals.
Metal merchants are reporting challenging conditions whereas others say they are busy, so the situation can best be described as mixed.
Hayes Metals (NZL), Vice-President of the BIR Non-Ferrous Metals Division