Hmmm not a good performance today given the strength of the market, I'm picking at the upcoming NZX 50 review, Steel & Tube out and Scales in.
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Hmmm not a good performance today given the strength of the market, I'm picking at the upcoming NZX 50 review, Steel & Tube out and Scales in.
I get the feeling many don't believe this
This steel 'issue' seems to be getting worse
GENERAL: STU: Recent Media - Huntly Bypass
Given the recent media attention around the Huntly Bypass pile casings, Steel
& Tube confirms its 18 May FY2016 earnings guidance disclosure appropriately
incorporated any impact from this issue.
On the radio today there was mention of a Chinese supplier looking to compete against STU to jump in the gap made by the recent certification issue. Apparently their product is certified and the open trade agreement doesn't prevent them from competing.
I wonder how easy it would be to compete in NZ given the cost of shipping metal (must be heavy, therefore expensive)? Does STU get its metal from abroad or locally, does anyone know?
Thanks, so probably a Chinese competitor could be threatening?
I'm not a holder of this one, buy I could come to the party of there's a drop in price with no real threat of a difficult competitor.
Structural steel and most commonly steel plate is imported from overseas. There are still quality concerns about Chinese steel and it is paramount that mill certificates are thoroughly examined before using the product. That said, there have been instances of fake mill certificates and accreditation. I would say most steel fabricators would import steel when possible as it is cheaper. This is most commonly steel plate because structural steel (beams, columns etc) needs to be made to New Zealand/Australia standard sizes. I image this is less appealing for overseas steel producers due to our smaller market.
Reinforcing steel is usually less of an issue because I believe most is sourced locally (of which steel and tube is a major player).
Punters still not believing that succinct statement from STU yesterday
Not good - more to come?
Sharechat - http://www.sharechat.co.nz/article/4...n-15-yearshtml
Strange hey go back to 9/11 lows - weird
Wonder when time to have a leap of faith as the fat prophet man says
I'd suggest waiting till after the index sellers come out. STU highly likely to be out of NZX50 (announcement 9 June) thereafter quite simply the stock will be sold as the index guys sell the stock. I'm targeting late June as a safer time to buy