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Steel & Tube flags increase in steel prices in New Zealand in early 2017-The 18th China(Guangzhou)Int’l&n
bsp;Metal &Metallurgy Exhibition
11/22/2016 -steel expo-metal &metallurgy expo |
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Business Desk quoted Steel & Tube Holdings boss Mr Dave Taylor as saying that a "dramatic upswing" in coking coal prices and higher iron ore prices meant there needs to be a hike in domestic steel prices in New Zealand next year. Mr Taylor made the comments in a presentation at the company''s annual meeting in Wellington.
Mr Taylor said results in the first half of the current financial year will be about in line with the same period a year ago when underlying profit was USD 9.9 million. He said that "However we do expect the second half will be much stronger reflecting the pricing opportunity, a full half benefit from cost reductions, a full half of CFDL and better results from its S&T Plastics unit.”
He added that the company does have some "reputational issues" to address related to its seismic mesh and steel pile cases supplied for the Waikato expressway.
Higher coal costs add about USD 140 (NZD 200) to a tonne of steel and the rise in iron ore amounted to another $40 increase per tonne of steel, he said that "Already steel prices have shown an upward trend, with steel mills no longer able to absorb this cost increase. These key cost contributors all point to a substantial price increase across all steel products that we expect will impact domestic steel prices in New Zealand very early in calendar year 2017.”
-The
18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
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