SHIPMENTS FALL.

Auckland Star, Volume LXIX, Issue 166, 16 July 1938, Page 15

SHIPMENTS FALL.

sWIRE IN DOMINION.

ABNORMAL CONDITIONS.

DISTURBED STATE OF TRADE.

A sharp reaction from the heavy demand for fencing wire and other fencing materials last year and early this year, has been experienced by a number of Auckland firms. In some quarters the falling-off in business has been so marked as to suggest a general curtailment of developmental activities on the farms, but against this it is pointed out by those closely in touch with the position that the import trade has been subject to unusual and somewhat disturbing* conditions.

"The latest import figures show a tremendous drop in shipments of wire arriving in Xew Zealand," said a prominent representative of the trade this morning, "but this is probably due to recent overstocking rather than to fluctuations in the demand of farmers. Xo doubt the consequences of the long summer, which culminated in the outbreak of eczema in sheep and cattle, has compelled many farmers to retrench to some extent, but there is still much development work going on, particularly on schemes of the Native Department and the Lands Department, and where reading improvements are being carried out by the Highways Board and by various local authorities."

A comparison of importations for the four months January to April over the past six years revealed that a peak was reached this year, when 81,834cwt of plain wire and 21,«55cwt of barbed wire arrived in the Dominion. In 1933 the figures had been 38,337cwt and 22,177 cwt respectively, and in the intermediate years the quantity of plain wire had been about midway between the limits indicated, while that of barbed wire had been above the latest level. Importing on this ' scale had " outstripped the demand, it was stated, and when the market began to realise this there was an immediate decline. . The figures for May were far below those of the preceding-months, and the downward trend was likely to have been continued since.

One of the interesting and unusual influences, according to several merchants, had been the position in Australian manufacturing plants. There wae a large accumulation of ordem for Aus-tralian-wire when the manufacturers in the Commonwealth maintained their price quotations unchanged after an advance of up to 30 per cent had been made by other countries. The orders got ahead of the output, and New Zealand was kept waiting for deliveries. When these arrived in large volume in the early months of this year the position wae completely reversed, as compared with a year ago. An explanation given by the manager of a wholesale firm, with branches in various parts of the province, wae that the rise in English pricee of wire last year had diver ted much trade to Australia, and that merchants* had ordered in abnormally large quantities in anticipation of the rise becoming general. Later developments had led to a more cautious attitude and the market was now in the process of being adjusted to the demand.