Market conditions remain very mixed in New Zealand. With a general election in a few weeks’ time, the market does not seem to have a great deal of direction. Consumer confidence has also been affected by a second lockdown; while we are once again near to being COVID-free, consumers are now notably more cautious.
Construction activity appears to be increasing, in line with people not being able to travel overseas for holidays and so opting to have more work done around the house; this is resulting in a slight increase in material flows into some scrap metal merchants. Domestic consumers are generally quieter as a result of lower local and international demand for their products.
All things considered, the New Zealand economy has been significantly impacted by COVID. Net core debt is predicted to treble over the next two years and the country finds itself in a recession for the first time in 11 years. GDP relative to Australia also shows that New Zealand is not tracking as well as its near neighbour even though the Australian state of Victoria is in one of the most severe lockdowns as a result of COVID infections.
Hayes Metals (NZL), Vice-President of the BIR Non-Ferrous Metals Division