Market Commentary
The New Zealand steel and metals industry is a driving force within the New Zealand economy. However, it is also captive to the health of that economy, and to the world economy. It is therefore facing challenging times and could see a near-term contraction of activity and profitability. In normal circumstances, the steel and metals industry employs about 30,000 people and contributes approximately $3.3 billion to the nation´s annual GDP. The NZ steel industry dates back to the 1800s, when European settlers first saw the potential in the magnetic qualities of the black ‘iron sands’ of the North Island west coast. Over the next century and more, ongoing attempts to smelt the iron from the sand met with disappointment as it clogged the traditional blast furnaces. It was only in the 1960s, with direct reduction techniques and electric arc furnaces, that engineers were able to pioneer a process which allowed the potential of the iron sand deposits to be realised. Nowadays, the sector´s largest enterprise is New Zealand Steel which owns the Glenbrook steel mill near Auckland. The mill commenced operations in 1970 and currently produces about 650,000 metric tonnes of steel a year, which is either used domestically or exported. It is the only mill in the world to make steel from iron sands. More than 90% of New Zealand’s steel requirements are produced at Glenbrook, while the remaining volume is produced by Pacific Steel, also near Auckland. Both companies are subsidiaries of the Australian company, BlueScope Steel.
Beyond the manufacturers, the structure of the steel and metals industry in New Zealand is well developed. Just to name a few of the participants: Steel & Tube Holdings is one of New Zealand’s largest steel distribution and processing companies; likewise, Vulcan Steel is a major distributor and processor of steel products in New Zealand and Australia; the Tiwai Point aluminium smelter, operated by New Zealand Aluminium Smelters, is one of the largest aluminium smelters in the world; RC Macdonald is a third-generation family company which stocks, trades and distributes steel; while Fletcher Building is significant in construction and building materials. New Zealand has more than 85 steel and stainless-steel fabricator businesses which cut, bend and assemble steel into a wide range of products such as pre-fabricated structural steel, machinery, piping and more. Each major sector of the steel and metals industry is supported by a peak association. Notable among them are: HERA (Heavy Engineering Research Association); Metals NZ; the NZ Stainless Steel Development Association; and the NZ Association of Metal Recyclers. New Zealand is a world leader in its development of the “circular economy” in which products are continually recycled to reduce carbon emissions. Approximately 300,000 tonnes of scrap metal is recycled each year in New Zealand. Furthermore, in 2023 the national government pledged $140 million towards the installation of an electric arc furnace at NZ Steel´s Glenbrook mill. This will have the effect of reducing emissions at the mill by half. It will also encourage an increased use of scrap metal in the steelmaking process. Currently under threat the NZ steel industry may be, but robust it certainly is as well.
Sierra Asia Pacific was formed by Trevor Turnock in 2006 when he recognised the need for larger machines for the processing of scrap metals in Australia and New Zealand. In the time since, Sierra Asia Pacific has become the dealer for Sierra scrap shears and balers manufactured by Idromec in northern Italy. This is a relationship which is still going strongly today. The Sierra brand is one of the most recognised in the world for scrap shears and scrap balers. More than 3,500 machines have been sold worldwide. At Sierra Asia Pacific, we are very proud of our products and product range which goes from 500 ton to 1600 ton shearing capacity. This includes side squeeze and folding door models to suit all applications. Semi mobile and static options for most of the range, plus several car baler options, are also available. Furthermore, Sierra Asia Pacific is also the approved dealer for ZB Group hammermill shredders, which are manufactured in Spain. Several of these machines are in operation in Australia. We also handle the Gusella range of scrap grapples. Beyond our New Zealand presence, Sierra Asia Pacific maintains a warehouse in Sydney for our spare parts support, which is managed by a third party in a logistics type arrangement. Our contact email is: sales@sierraasiapacific.co.nz Our New Zealand phone number is: +64 274 953 776. Our Australian mobile is: +61 414 952 861.
Since its inception way back in 1868, A & G Price Ltd has grown to become New Zealand’s premier engineering company. Our foundry casts grey irons, ductile irons, alloyed irons, steel, alloyed steels, manganese steel, stainless steel and non-ferrous materials, followed by the appropriate heat treatment in our high-temperature, computer-monitored ovens. Our fabrication shop’s full complement of rolling, pressing and cutting capabilities, weld procedure library and certified welders, can undertake any fabrication job or specialised weld overlay. In addition, we have a heavy fitting shop where we can recondition machinery back to OEM standards. We also have a large CNC machine shop where castings and fabrications can be finish machined, and certified NDT, if required, before painting and delivery. This all takes place under the umbrella of our accredited certification to ISO 9001:2015 making us a “one stop shop”. No need to deal with various subcontractors and we stand by our product for all our processes. Green energy from hydroelectric and our hybrid solar electric array feeds direct to our foundry’s furnaces, machine shop, fitting, fabrication and paint shops. As part of CER we are classed as local Australian content for Australian government contracts. We are an approved supplier to Australian defence and rail. Talk with our team on +64 (0)7 8686060 or email sales@agprice.co.nz Our website is: www.agprice.co.nz
Alrite Steel is a family-owned-and-operated steel distribution company founded in Auckland, New Zealand in 2003 by Bhaskar Sharma (Managing Director). Alrite Steel is extremely passionate about supplying high quality, cost effective and compliant steel products throughout New Zealand and the Pacific Islands. The Alrite team has a combined experience of 50 years of industry knowledge, commercial & administration skills and understanding of the operating culture and systems within the steel market. Alrite Steel carries steel hollow sections, pipe, beams, columns, channels, flat bar and angles. We specialise in bringing pile casings and sheet piles on indent for custom made orders. Alrite’s client base ranges from owners and end users, engineers & consultants, building developers & civil contractors, heavy & light engineering, manufacturing companies, steel fabricators and scaffolding companies. Alrite Steel is accredited and associated with the following organisations: IMSM – ISO 9001:2015 – Quality Management System; Steel Construction New Zealand – Structural Steel Distributor Charter; Heavy Engineering Research Association (HERA) – Platinum Member; ACRS Traceability Scheme Certification – Certified Supplier; National Association of Steel Housed Framing (NASH) – Member; Sustainable Steel Council (SSC) – Member (Gold Certification); New Zealand Fiji Business Council – Board Member; Site Safe – Member. We can be contacted by phone on: +64 9 2702008. Our website is: www.alrite.co.nz
Macdonald Steel is a proud, family-owned business in New Zealand’s steel industry, with more than 60 years´ experience. During this time, we have built a strong reputation for delivering high-quality steel products, matched with exceptional customer service. Macdonald Steel’s commitment to quality is evident through its certifications and accreditations, including from the ACRS Traceability Scheme, the Sustainable Steel Council (SSC), and the Structural Steel Distributor Charter from SCNZ. Our product range is extensive and includes structural steel, sheet metal, stainless steel and aluminum. We offer products such as hot-rolled plates, welded beams and columns, coils, cold-rolled steel, electro-galvanized steel and various wire products. All products meet Australian and New Zealand standards ensuring they are suitable for a wide range of construction, from major infrastructure and building projects to small-scale tailored jobs. Innovation and customer focus are central to Macdonald Steel. We pride ourselves on being able to source and supply specific steel products tailored to customer needs, regardless of project size. Our customer-centric approach has earned us many long-standing relationships with clients throughout New Zealand, Australia and the Pacific Islands. With locations across New Zealand, our friendly team is here to assist. For more information, visit https://macdonaldsteel.co.nz/ and Talk to Our Team.