The New Zealand scrap metal market remains mixed, with many commenting on lower intakes or more challenging trading conditions. Local metal consumers remain generally quieter, although traditional offshore markets continue to be an option.
With the election of the next government scheduled for October 14, it seems in some respects that the economy is in a holding pattern at present. The New Zealand Reserve Bank held the official cash rate at 5.50% in early October, signalling that inflation is still not within the 1-3% band. Coupled with a tight labour market and rising costs, this is further stressing leveraged households and businesses.
Australia’s official cash rate remains at 4.1%. Although merchants and consumers are signalling mixed intakes at present, the policies being implemented seem to be easing stresses to a greater extent.