Steel & Tube's half-year earnings to December 2022 dip to $11.8 million

Chief executive Mark Malpass said steel demand was expected to moderate as economic conditions impacted businesses across multiple sectors.

"Following the recent 'super cycle', we are well positioned to respond to moderating demand," he said.

"We have a strong balance sheet and cashflows, and are actively managing costs and margins per tonne.

"Customer and employee satisfaction remains at high levels and we are a preferred supplier for projects large and small across a diverse range of industries.

"Our recent growth investments are performing well and we are continuing to assess new opportunities that complement our existing business and provide growth pathways."

Solid demand for steel continued in the six months to December, despite activity starting to ease across most sectors, with a long line of infrastructure projects underway, Malpass said.

"Supply chain constraints started to lift with international freight costs reducing towards the end of 1H23," he said.

"Steel prices started to recede during the half although in December and January international prices firmed on a NZ dollars basis.

"Macro-economic headwinds, including inflation, a higher interest rate environment, a tight labour market and the ongoing impact from Covid, continue to provide challenges."