Steel Prices Still Underpinning BlueScope
2:17 PM
As BlueScope Steel revises guidance higher, once again, assessments of where peak earnings lie are becoming even more critical to the outlook
-Demand supporting the earnings outlook into FY22
-Are earnings nearing a peak?
-Potential for cash returns enhanced
By Eva Brocklehurst
BlueScope Steel ((BSL)) has developed a habit recently of revising guidance higher as its two principal earnings drivers, Australian Steel Products and North Star in the US, combine in a show of strength. The company now expects second half earnings (EBIT) to be $1-1.08bn, from prior guidance of $750-830m, driven primarily by improved steel pricing and volumes.
Asian Shares Fall On Growth Worries
CANBERA (dpa-AFX) - Asian stocks ended flat to slightly lower on Tuesday as climbing Covid-19 cases in emerging economies including India and Brazil dented hopes for a swift global economic recovery.
Traders also awaited the Federal Reserve s monetary policy announcement and Chairman Jerome Powell s comments on the economy for directional cues.
Chinese shares ended little changed even as official data showed profits at China s industrial firms nearly doubled in March from a year ago.
The benchmark Shanghai Composite index finished marginally higher at 3,442.61 while Hong Kong s Hang Seng index ended down 11.29 points at 28,941.54.
Japanese shares ended lower as a slew of earnings disappointed and the Bank of Japan maintained its monetary stimulus unchanged, as widely expected, after tweaking its policy at the March meeting.
BlueScope Steel (ASX:BSL) pushes earnings guidance above $1B themarketherald.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from themarketherald.com.au Daily Mail and Mail on Sunday newspapers.
Strong margins open the door for $US200 iron ore
Strong steel margins could pave the way for the price of iron ore to hit $US200 a tonne, commodity investors say, as Australian and Brazilian producers struggle to keep up with demand from China.
Iron ore prices shot to a nine-year high on Monday, rising 1.9 per cent to $US181.80 a tonne in the spot market, supported by strong margins at Chinese steel mills, according to Fastmarkets MB.
“I would never put a cap on where prices can go,” said Tribeca Global Natural Resources portfolio manager Ben Cleary. “Customers’ margins are increasing, not decreasing, and so there’s definitely runway to go to $US200 [a tonne].”
Strong margins open the door for $US200 iron ore
Share
Strong steel margins could pave the way for the price of iron ore to hit $US200 a tonne, commodity investors say, as Australian and Brazilian producers struggle to keep up with demand from China.
Iron ore prices shot to a nine-year high on Monday, rising 1.9 per cent to $US181.80 a tonne in the spot market, supported by strong margins at Chinese steel mills, according to Fastmarkets MB.
Tribeca’s Ben Cleary isn’t ruling out iron ore hitting $US200 a tonne.
Peter Braig
“I would never put a cap on where prices can go,” said Tribeca Global Natural Resources portfolio manager Ben Cleary. “Customers’ margins are increasing, not decreasing, and so there’s definitely runway to go to $US200 [a tonne].”