Pacific Steel Group has advised customers it will be increasing the price of all its steel reinforcing and wire products by 12%, effective from March 1.
The price rise is due to a 25% jump in the cost of scrap metal since Christmas.
Pacific Steel Group products are made entirely from New Zealand-sourced recycled scrap metal, but the price is set by the international market.
Pacific Steel Group general manager John Beveridge says ongoing volatility in global steel commodities market means the company will be continually reviewing its prices in the coming months.
“It is highly possible we may have to increase the price of our steel products again in the near future, even as early as April,” he says.
The unprecedented rise in the price of scrap metal has been attributed to booming demand for steel in India and China, a revival of demand in South-east Asia and a tightening of the supply of scrap metal from large sources such as Russia.
Mr Beveridge says despite the global shortages, Pacific Steel Group will be able to maintain supplies to its major customers.
Pacific Steel Group has reiterated advice to its direct customers to not have fixed price agreements with their end customers due to the likelihood of continued volatility in the steel market for some time.
Pacific Steel Group in Auckland is New Zealand’s only manufacturer of reinforcing steel and wire, under the Seismic and Wiremark brands respectively.