Procurement Update - February 2021

Fast rising commodity prices have driven home the fact that commodity prices are volatile, unpredictable and subject to shocks. 

China, the juggernaut in the global economy continues to forge ahead with expansion plans and steel demand in the rest of the world strengthens as a result of vaccination programmes, subsidies and stimulus measures. Combined with this are disruptions to global supply chain and local port challenges resulting in a significant lift in delivered steel prices into New Zealand. This combination will continue to put pressure on steel prices.