Since our last communication in early June international steel pricing has continued to escalate (in NZ Dollars). A number of major suppliers have announced increases and some have moved to fortnightly pricing schedules with increases received at each review.
You will also be aware of significant capacity issues relating to international shipping and port congestion with pricing of container shipments rising steeply.
We continue to work closely with our suppliers and because of our scale we have been able to mitigate a number of costs. However, due to the material quantum of these increases we will again have to pass these onto the market.
We trust that providing some notice and transparency regarding these changes will be helpful in your planning. We will shortly release a new “Procurement Update” which details more fully the dynamics and drivers of steel prices and the environment in which we are now operating. This will be posted on our website steelandtube.co.nz by 13 August.
Key category increases
Effective Monday 6 September
Stainless range 10-12%
Reinforcing bar, mesh. 12%
Galvanise wire products 7%
Hollows- RHS/ SHS 15%
ERW Pipe 19%
Engineering Steels 6-8%
Chain and Rigging Products 5%
EG/Hot rolled coil/sheet 9%
Effective Monday 4 October
Merchant Bar 10%
Pipe Fittings 10%
Pipe/Line Pipe 5-10%
Structurals 13%
Narrow Plate 12%
Galvanised sheet/Coil 18%
We have also received a number of local freight increases from some suppliers and will need to revise some freights as a result.
Should you have any queries please don’t hesitate to contact your usual Steel & Tube Account Manager or Customer Excellence Centre representative. Thank you for your ongoing support in this unprecedented environment.
Yours Sincerely
Marc Hainen, GM- Distribution
Mohammed Afroz, GM- Rollforming