Company Announcements
November 21, 2025
North Star shines at max capacity for Australia's BlueScope
Written by Laura Miller
BlueScope reported improving spreads in North America as its North Star mill in Delta, Ohio, continues to run full.
And the Australian steelmaker expects to report significantly improved results from its North American operations in its next earnings release.
The BlueScope North America segment as a whole should deliver impressive sequential results, almost 33% higher in the July through December period, the company said on Nov. 18.
But Steelscape – the company’s West Coast building products subsidiary – was called out for weaker results. The driver: margin compression stemming from tariffs and softer US steel prices. Recall that Steelscape consumes sheet to make products such as metal roofing and siding.
In Australia, the company expects moderately better results while facing escalating cost pressures and softer pricing. Performance was mixed in Asia, with strong performance in Southeast Asia, seasonal improvement in China, and flat results in India, New Zealand, and the Pacific Islands.
But across BlueScope as a whole, it was the North Star operations that shone brightest in the company’s first-half fiscal 2026 trading update.
BlueScope projects that North Star’s results will be nearly 50% higher than the previous period. The operations posted EBIT of A$202 million in the six months ended June 30.
“Whilst benchmark spreads softened in September and October, recent price increases and improved realised spreads have moderated this impact,” BlueScope explained.
“The business continues to operate at full utilisation, with the debottlenecking project progressing well,” it added.
BlueScope anticipates that the A$130 million debottlenecking expansion at North Star will lift the mill’s annual capacity 10% to 3.6 million short tons. Various projects are underway across the facility to unlock additional tonnage.
“While macroeconomic conditions remain mixed, there are positive signs in Australian construction markets and spreads have improved in the US,” Managing Director and CEO Mark Vassella said in a statement. “Our focus remains on the levers we control – cost, capital and capability – while positioning the business for longer-term growth.”
Vassella plans to retire in July. BlueScope has named Tania Archibald as his successor. She assumes the position on Feb. 1, 2026.
