Insights

Here’s why the BlueScope (ASX:BSL) share price is shooting 8% higher today

The BlueScope Steel Limited (ASX:BSL) share price is shooting higher on Tuesday after making a big upgrade to its earnings guidance…
The post Here’s why the BlueScope (ASX:BSL) share price is shooting 8% higher today appeared first on The Motley Fool Australia. –

A happy smiling kid points his fingers up, indicating a rising share price

The BlueScope Steel Limited (ASX: BSL) share price is racing higher on Tuesday morning.

In early trade, the steel producer’s shares are up 8% to a 52-week high of $23.99.

Why is the BlueScope share price racing higher?

Investors have been fighting to get hold of BlueScope’s shares this morning after it provided an update on its guidance for FY 2021.

As you might have guessed from the performance of the BlueScope share price, the update was a very positive one.

According to the release, BlueScope now expects its underlying earnings before interest and tax (EBIT) for the second half to be in the range of $1 billion to $1.08 billion.

This compares very favourably to its previous guidance range of $750 million to $830 million, but remains subject to spread, FX, and market conditions.

Why did it upgrade its guidance?

The release explains that the company’s North Star business in the US was the main driver of this upgrade.

Management advised that Midwest benchmark HRC steel prices have risen by around US$250 per metric tonne since its original guidance was provided in February. This has resulted in stronger than expected spreads.

Also giving its performance a boost has been its Australian Steel Products business. It is also benefitting from improved realised domestic and export steel spreads. In addition, domestic despatch volumes are currently tracking ahead of the company’s expectations. This is particularly the case for higher value products in the building and construction sector.

Complementing this is its Building Products business, which is now expected to deliver an improved result over the first half. This is due mainly to expanding margins in the North America coated business driven by rapidly increasing steel prices. ASEAN earnings are also anticipated to be better than prior expectations due to higher than expected steel prices.

BlueScope’s Managing Director and CEO, Mark Vassella, said: “The business has gone from strength to strength, benefitting from strong spreads, prices and demand. All of the BlueScope team are doing an outstanding job in working to meet exceptional customer demand.”

“The performance continues to demonstrate the unique strength and value of our business model. BlueScope is a very different type of steel company and is in a compelling position to take advantage of emerging trends, such as demand for lower density and regional housing and for e-commerce and logistics infrastructure,” Mr Vassella added.

Following today’s gain, the BlueScope share price is now up 36% year to date.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the BlueScope (ASX:BSL) share price is shooting 8% higher today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!