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Australasia

Generally speaking, the New Zealand metals market is noticeably quieter even though base metal indices have rocketed upwards. Consumers are still cautiously buying at current levels.

Metal recycling is typically a barometer of manufacturing, and with a noticeable softening in some sectors, particularly construction, the outlook remains challenging.

Coupled with a technical recession and the Reserve Bank of New Zealand maintaining the official cash rate at 5.5% owing to persistent inflationary pressure, near-term conditions are proving equally demanding for businesses and home-owners alike.

Australia’s Reserve Bank has also left its official cash rate unchanged, in its case at 4.35%, although the outlook is more favourable in the short term. Metal merchants in Australia have also indicated a softening of conditions although, with robust base metal and commodity prices, the mining sector remains very strong.