Falling exchange rate and increased costs driving up price of reinforcing steel

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Pacific Steel has advised its customers that it has increased prices for reinforcing steel and wire by about 10%, effective at the start of April. “We have seen the exchange rate fall 10.5% since last November and world scrap prices have increased by 5% in the past month alone,” according to Pacific Steel general manager Alan Pearson.

“The combination of these factors has meant that we have been forced to increase our prices. Signifi cant change “We have maintained our current list prices for the past nine months which is a signifi cant change from a few years ago when steel and wire prices were extremely volatile,” Mr Pearson says. 

“We have sustained the current prices for as long as we can, but are forced to increase our prices due to external factors beyond our control.” Global trend The increase in the price of New Zealand-made steel is consistent with the global trend of increasing prices of imported products. 

Steel industry monitors such as Steel Business Briefing and ME Steel are reporting movements in global prices for reinforcing steel of between 4.5% and 11% during the past month.