Falling NZ$ and AUD$ Impacting Buy Prices of Raw Materials

Falling NZ$ and AUD$ Impacting Buy Prices of Raw Materials

The retreat in the global value of the NZ$ and AUD$ will have an impact on cost inputs into production raw materials in these countries. It is likely that there will be price increases in the pipeline as soon as currency hedging and stock levels align with new supplies.

In recent years the stronger buying power of both of these currencies led to lower costs that offset the increases in domestic costs such as Labour, Electricity, Insurance and Municipal charges. Prices at the user end of the supply chain have been static for a number of years. In Saito’s case there has been virtually no price increases for many years as strong currency and capital works improved operating costs.

It is likely that domestic prices will rise as these cost impacts flow into the supply chain. Material which makes up a large portion of finished products will ultimately have an impact.

Saito will maintain a vigilant control over input costs however currency movements recently experienced are outside of our direct control.

End

Comments are closed.