BlueScope Reports an Improved Forecast

Demand strength in the Australian market has driven domestic steel shipments and exceeded expectations, said Vassella. “Benchmark steel spreads in East Asia and the Midwest U.S. are currently above longer-term averages as the beginning of 2H FY2021 approaches. Nonetheless, there remains uncertainty around spreads and volumes given the risks of the evolving impact of COVID-19, which could disrupt demand, supply chains and operations, and broader macroeconomic activity.”

The company’s U.S. segment, North Star BlueScope, is shipping at full capacity due to automotive demand. “Since the end of 2H FY2020, realized steel spreads have bottomed and are improving, driven by a significant increase in benchmark Midwest hot rolled coil prices in recent months and more stable raw material costs. Given usual pricing lags in the sales mix, 1H FY2021 underlying EBIT is expected to be lower than 2H FY2020,” he said.

The EAF expansion project at North Star remains on schedule for commissioning in 2022. The company’s third EAF will have a melt capacity of approximately 850,000 metric tons and a second caster. Once completed, the Delta, Ohio, mill will have an annual capacity of 3.0 million metric tons.