Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/ed9110599ea2ba74c231b17b4567d698.jpg)
North Star is a Winner for BlueScope Steel
Written by Sandy Williams
August 20, 2019
North Star BlueScope was a key contributor to FY 2019 results for Australian parent BlueScope Steel. Revenue at North Star totaled $916 million in the first half of the fiscal year and $784 million in the second half. Total FY 2019 revenue was $1.7 billion, up from $1.49 billion in FY 2018.
North Star BlueScope’s second-half shipments increased to 1,073,900 metric tons from 1,036,400 tons in the first half of FY 2019. Shipments totaled 2.11 million MT for the fiscal year, a slight increase from FY 2018.
North Star continued to operate at full capacity in FY 2019.
Looking ahead, the company expects benchmark spreads in the U.S. to soften through the first half of FY 2020 to a level approximately $90 per ton lower than 2H FY 2019. Volumes are expected to decline due to normal seasonality, while a modest increase is forecast for consumables, including electrodes.
The big news for North Star was the green lighting of a $700 million expansion that will include a third EAF and second caster at the mill in Delta, Ohio, which will increase capacity by 936,000 net tons. Initial production is anticipated for late 2021.
BlueScope Steel reported a FY 2019 net profit after tax of AUS $1.015 billion (U.S. $688 million).
“Underlying EBIT for the year was $1,348.3 million, up 6 per cent or $79 million over FY 2018. This was our third successive full year with underlying EBIT above $1.1 billion,” said BlueScope Managing Director and CEO Mark Vassella. “Despite some softening in commodity steel spreads and domestic volumes in the second half, in FY 2019 BlueScope delivered another very good result.”
Underlying EBIT rose 52 percent year-over-year at North Star, but fell at all other divisions of BlueScope in FY 2019. EBIT declines of 9 percent were reported at Australian Steel and 27 percent at Building Products Asia & North America. EBIT dropped 28 percent at both Buildings North America and New Zealand & Pacific Steel.
NOTE: AUS $1.00 = U.S. $.68; NorthStar BlueScope amounts in U.S. dollars
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.