International pricing has continued to escalate. Since our last communication most categories have had further increases. This has been compounded by continued high shipping and logistics costs as well as more recently the removal of a Chinese export rebate of 13%.
Our focus has been to work closely with our suppliers to minimise impacts and as New Zealand’s largest steel distributor we are well positioned to leverage this scale.
Unfortunately, with elevated costs for raw materials and freight we will now need to lift prices by the following amounts (approximate):
Effective 1 July 2021
Structural Sections + 10%
Plate + 15%
Coil & Sheet + 10 to 15%
Stainless Steel + 10%
Engineering Steels + 5 to 10 %
Fasteners + 8%
Selected other products (primarily palletised products such as fittings, valves, chain & rigging, imported rural products etc) +5 to 15% and selected regional freight/courier charges.
Effective 1 August 2021
Pipe, RHS, and SHS + 7 to 9%
Line Pipe +13%
Merchant bar + 8%
Effective 5 September 2021
Further useful information on the market dynamics driving the steel pricing can be read in the Procurement Update which will be updated on the 7th of June and can be found on www.steelandtube.co.nz.
If you have any queries, please contact your Account Manager or our Customer Experience Centre. We trust that the advance notice together with guidance at a category level is helpful and thank you for your ongoing custom.
Yours Sincerely,
Marc Hainen, GM Distribution
Mohammed Afroz, GM Rollforming