September 07, 2008

Pacific Steel to raise prices by 12% from March 1st 2008

Pacific Steel Group has announced that it will increase the price of all its steel reinforcing & wire products by 12% with effect from March 1st 2008 due to a 25% jump in the cost of scrap metal.

Mr John Beveridge GM of Pacific Steel Group said that ongoing volatility in global steel commodities market means the company will be continually reviewing its prices in the coming months.

He added that “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 2008.”

It is noted that 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.

Pacific Steel Group in Auckland is New Zealand’s only manufacturer of reinforcing steel and wire, under the Seismic and Wiremark brands respectively. Its products are made entirely from New Zealand sourced recycled scrap metal, but the price is set by the international market.