Australia’s leading steelmaker BlueScope’s Australian Steel Products expects to deliver a lower result than 2H FY2022. BlueScope said “Underlying domestic demand remains solid across key end-use segments, supported by a healthy construction backlog. However, dispatch volume is expected to be lower than 2H FY2022 particularly due to distribution customers seeking to lower inventories in a falling price environment and following the arrival of delayed imports. Building segment dispatches have also been impacted by unfavorable weather events and some labor constraints in the building and construction supply chain. The assessment of the reline and upgrade of the currently mothballed No 6 Blast Furnace facility at Port Kembla is continuing.”BlueScope’s North Star BlueScope Steel is expected to deliver a result around a third of 2H FY2022, with the improvement to prior expectations driven by the depreciation of the AUD:USD benefitting translation of earnings. BlueScope said “The business continues to operate at full capacity. The ramp-up of the expansion project is progressing well to plan, however it is not yet at the stage where it is likely to make a meaningful contribution in the half.”BlueScope’s Buildings & Coated Products North America expects result around twice that of 2H FY2022. BlueScope said “The contribution from the engineered building solutions business, which is benefitting from expanded margins on lower steel feed costs, is expected to be better than expectations at the time August guidance was provided. A negligible contribution is expected from BlueScope Properties Group due to project timing. Integration of the BlueScope Coated Products business is progressing well.”BlueScope said “Expectations have moderately improved for Building Products Asia & North America since guidance was provided in August, but we continue to expect a slightly weaker result than 2H FY2022. Margins in the North America business are better than expected, albeit lower compared to the cyclical highs of FY2022. The business is expected to contribute around half of the segment's earnings in 1H FY2023. In addition to the typical favorable seasonality of the December half, the China business is seeing stronger dispatch volumes and is expected to contribute around half of the segment's earnings in 1H FY2023. The ASEAN businesses are experiencing difficult trading conditions reflecting weaker regional demand in a falling price environment and are expected to deliver a moderate loss in 1H FY2023. The Indian business is performing well and is expected to make a slightly lower contribution than last half.”BlueScope said expectations for New Zealand & Pacific Island performance have softened since the August outlook was provided. Domestic dispatches are expected to be robust but lower than previously anticipated due to similar effects as seen in the Australian business.
Australia’s leading steelmaker BlueScope’s Australian Steel Products expects to deliver a lower result than 2H FY2022. BlueScope said “Underlying domestic demand remains solid across key end-use segments, supported by a healthy construction backlog. However, dispatch volume is expected to be lower than 2H FY2022 particularly due to distribution customers seeking to lower inventories in a falling price environment and following the arrival of delayed imports. Building segment dispatches have also been impacted by unfavorable weather events and some labor constraints in the building and construction supply chain. The assessment of the reline and upgrade of the currently mothballed No 6 Blast Furnace facility at Port Kembla is continuing.”BlueScope’s North Star BlueScope Steel is expected to deliver a result around a third of 2H FY2022, with the improvement to prior expectations driven by the depreciation of the AUD:USD benefitting translation of earnings. BlueScope said “The business continues to operate at full capacity. The ramp-up of the expansion project is progressing well to plan, however it is not yet at the stage where it is likely to make a meaningful contribution in the half.”BlueScope’s Buildings & Coated Products North America expects result around twice that of 2H FY2022. BlueScope said “The contribution from the engineered building solutions business, which is benefitting from expanded margins on lower steel feed costs, is expected to be better than expectations at the time August guidance was provided. A negligible contribution is expected from BlueScope Properties Group due to project timing. Integration of the BlueScope Coated Products business is progressing well.”BlueScope said “Expectations have moderately improved for Building Products Asia & North America since guidance was provided in August, but we continue to expect a slightly weaker result than 2H FY2022. Margins in the North America business are better than expected, albeit lower compared to the cyclical highs of FY2022. The business is expected to contribute around half of the segment's earnings in 1H FY2023. In addition to the typical favorable seasonality of the December half, the China business is seeing stronger dispatch volumes and is expected to contribute around half of the segment's earnings in 1H FY2023. The ASEAN businesses are experiencing difficult trading conditions reflecting weaker regional demand in a falling price environment and are expected to deliver a moderate loss in 1H FY2023. The Indian business is performing well and is expected to make a slightly lower contribution than last half.”BlueScope said expectations for New Zealand & Pacific Island performance have softened since the August outlook was provided. Domestic dispatches are expected to be robust but lower than previously anticipated due to similar effects as seen in the Australian business.
