Bluescope Steel expects its gross earnings to increase by 30pc to $340mn in the first half of next year over H1 2020.
The company performed strongly last quarter, as worldwide demand improved following COVID-19-related. However, Bluescope’s projections are contingent upon market conditions, how the COVID-19 crisis plays out, macroeconomic factors, and more.
Bluescope anticipates that its Australian segment will perform better in H1 FY2021 than H2 FY2020 because it’s noticed rising domestic demand and better spot steel prices. The firm also expects New Zealand and the Pacific Islands to improve and for operations to return to normal as the COVID-19 crisis comes under control.
The company’s US-based North Star plant is shipping at full steel capacity to the automotive sector, signigying that the market is back to normal after recovering from the COVID-19 lockdown period this past spring. The whole of North America has seen improved performance in the engineered building business, and the firm expects it to continue into the first half of next year.
The ASEAN market’s performance has been robust during H2 FY2020 and it’s expected to improve next year, provided that COVID-19 doesn’t cause any more disruptions.