Australia’s BlueScope expects steel demand to remain muted and supply to stay weak in some of its key markets through FY 2021.
In its earnings guidance and update for FY 2020, on July 17, the company reported that it is also re-evaluating its New Zealand operations to ensure they remain financially viable for the firm given the country’s public policies that are proving challenging for the business.
BlueScope expects to close FY 2020, ended June 30, 2020, with unaudited earnings at around $560mn of which, $260mn could be earned in H2. The projection reflects a strong performance throughout the year despite being hit by the pandemic and mandated government closures across the globe.
At the moment, the North American and Asian market steel spreads are likely to remain lower in 2021 compared with H2 2020 due to weak demand, the company indicated. Moreover, the company’s shipments from Australia have remained stable with its North Star facility’s despatching volumes touching full capacity in FY 2020.