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.