Australian blues scope steel benefits U.S. tariffs on steel imports

Aaditya Govindrao and Adwitiya Srivastava

(Reuters) – Bluescope Steel’s share rose for more than two months on Monday, supported by expectations that the Australian steel maker’s US business will come from potential tariffs on all steel imports into the country. Ta.

The stock was one of the top gains of the benchmark S&P/ASX 200 index, which rose at 4% x 0234 GMT to reach its highest level since December 2, 2024, and fell 0.4%.

US President Donald Trump said in another major escalation of his trade policy overhaul, he would introduce a new 25% tariff on all steel and aluminum imports into the country, in addition to his existing metals operations. .

According to data from the government and the US Steel Institute, the largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam.

Analysts at Jefferies said protectionism in the US steel industry should provide a tailwind for the domestic prices of hot roll coils, a kind of steel, and is positive for Bluescope.

They said they hope that tariffs will lower BlueScope’s Australian business by around $80 million ($50 million) in fiscal year 2026, but given the massive US revelations, the overall for the company He said he should be positive.

North America was Bluesscope’s largest revenue generation geography for fiscal year 2024, accounting for approximately 43.9% of total revenue. Bluescope operates North Star Steel Mill in Ohio.

($1 = 1.5962 Australian dollars)

(Reporting by Aaditya Govind Rao and Adwitiya Srivastava of Bengaluru.