BlueScope Steel (BSL.AX), Australia’s largest steel producer, expects to benefit from the recently announced US import tariffs on steel and aluminum, according to CEO Mark Vassella, Reuters reports.
The 25% tariffs, introduced by former US President Donald Trump without exceptions for allied nations, have led to rising steel prices, which could positively impact BlueScope’s North American operations.
Following the company’s better-than-expected first-half profit report, Vassella noted that steel prices had already increased by 20% since the announcement.
“If prices go up, as we saw last time, then the short answer is, yes, we stand to benefit,” he said.
BlueScope’s stock responded positively, climbing 12% to A$25.03 ($15.90), its highest level since August 2021, while the broader S&P/ASX 200 index fell by 0.7%.
BlueScope operates five businesses in North America, including the North Star mill in Ohio, which, along with other operations, produces around 3 million tonnes of steel annually. By comparison, the company exports approximately 300,000 tonnes of Australian-made steel to the U.S. each year.
“It’s really a 300,000 tonnes versus a 3 million tonne argument,” Vassella said.
He emphasized that the company’s North American output outweighs its exports.
The steelmaker highlighted strong underlying demand in the US across key industries such as construction, automotive, and manufacturing. Historically, tariffs have led to significant price increases, with steel rising from $500 per tonne to as high as $900 per tonne during the Trump administration’s previous tariff measures.
“Being a domestic manufacturer, we will potentially benefit from any increase in price that occurred because of the tariffs and their impact on imported steel,” Vassella added.
In the six months leading to December 31, 2024, North America accounted for 42% (A$309 million) of BlueScope’s underlying earnings before interest, tax, depreciation, and amortization (EBITDA), surpassing Australia’s 39% (A$288 million). Although the company’s first-half net profit fell 59% to A$179.1 million, it still exceeded analyst expectations of A$170 million. In response to its performance, BlueScope increased its interim dividend by 20% to 30 Australian cents per share.
