BlueScope Steel Shares Surge Amid U.S. Tariff Developments

2 min read | February 10, 2025 01:18 PM AEDT | By Team Kalkine Media

BlueScope Steel Shares Surge Amid U.S. Tariff Developments — Image source: Shutterstock

U.S. Tariffs and Their Impact on BlueScope

North America is a key revenue driver for BlueScope, contributing 43.9% of total sales in fiscal 2024. The proposed tariffs could have a mixed impact on the company:

Potential earnings drag: With BlueScope exporting approximately 200,000 tonnes of steel annually, analysts estimate an AU$80 million hit to the company’s FY26 average selling price (ASP) earnings.
North Star production: According to Jefferies, one of BlueScope’s key U.S. operations, North Star, is expected to produce 3 million tonnes in FY26. To counter the ASP impact, BlueScope would need a $15-$20 per tonne increase in North Star prices.
Industry-wide price boost: Despite potential headwinds, analysts at Jefferies believe the tariffs could drive up U.S. hot-rolled coil steel prices, benefiting BlueScope’s North American business.

Stock Performance and Market Sentiment

BlueScope shares have climbed 15.1% year-to-date, reflecting positive sentiment toward the steel industry amid expectations of higher domestic steel prices in the U.S..

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