Markets are softening for metal merchants in New Zealand and Australia. Scrap availability has declined and what is there is being fought over, with the result that margins are coming under further pressure.
Local consumers are still buying in the current market, although they too are commenting on softening and challenging conditions. Traditional offshore markets are becoming increasingly complex, which is also making marketing material difficult.
The outlook for the New Zealand economy is more cautious, with most market commentators anticipating further official cash rate cuts in the near term. The Australian economy is also showing signs of weakness.
Paul Coyte
Hayes Metals (NZL), Vice-President of the BIR Non-Ferrous Metals Division
Country
Australia
