Steel Products
North Star BlueScope Production Up in FY2013
Written by Sandy Williams
August 20, 2013
Australian company BlueScope Steel announced EBIT of $66.7 million for its 50 percent ownership of U.S. based North Star BlueScope Steel for FY 2013 ending on June 30, 2013. Earnings for the fiscal year improved by 7 percent over FY 2012 due to improved cost control and decreased depreciation charges that offset slightly weaker spreads. Spreads were affected by lower selling prices partially offset by lower scrap costs.
Raw steel production totaled for FY2013 totaled 1,008,700 tonnes (1,111,883 tons) compared to 985,100 tonnes (1,056,107) in FY2012. Steel shipments (all domestic) increased 2.0 percent to 983,200 tonnes (1,083,774 tons) from 962,800 tonnes (1,061,287 tons) in FY 2012. In the second half of FY 2013, 512,500 tonnes (564,925 tons) of raw steel was produced resulting in shipment of 507,100 tonnes (558,972 tons).
The North Star BlueScope Steel is a 50-50 venture between BlueScope Steel Ltd. and Minnesota based Cargill, Inc. The company is located in Delta, Ohio and produces hot rolled coil by electric arc furnace. North Star sells 80 percent of its production in the Midwest to an end market mix of 45 percent automotive, 25 percent construction, 10 percent agricultural and 20 percent manufacturing/industrial applications.
The shipment of steel reported above is for BlueScope’s 50 percent share in North Star. Multiplying 983,200 tonnes by two we can assume shipment of 1,966,400 tonnes (2,167,548 tons) for North Star for FY 2013. Raw production would be 2,017,400 tonnes (2,223,765 tons) nearly a 92 percent capacity rate based on 2.2 million tonne annual capacity for the mill.
Sandy Williams
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