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2mo ago

BlueScope Steel Sees Gains from U.S. Tariffs Despite Risks from Chinese Steel

Australia's largest steelmaker expects U.S. tariff-driven price increases to boost profits, while warning of potential steel dumping in domestic markets.

The entrance of the BlueScope Port Kembla Steelworks is pictured, in Wollongong, Australia, February 9, 2024. REUTERS/Lewis Jackson/File Photo
A worker stands next to a furnace at the BlueScope steelworks, Port Kembla, Australia February 9, 2024. REUTERS/Lewis Jackson/File Photo
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Overview

  • BlueScope Steel anticipates higher profits in North America due to U.S. President Donald Trump's 25% tariffs on steel and aluminum imports.
  • The company's CEO, Mark Vassella, noted a 20% increase in steel prices since the tariff announcement, benefiting BlueScope's U.S. operations.
  • BlueScope's Australian operations, which produce 3 million tonnes of steel annually, face risks from potential Chinese steel dumping in response to the tariffs.
  • The steelmaker's first-half net profit dropped 59% to A$179.1 million but exceeded market expectations, driving its stock to a 3-year high.
  • BlueScope raised its interim dividend by 20% and projected stronger earnings for the second half of the fiscal year.