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BlueScope Steel (BSL) $22.16

BSL +0.50%: the steel maker upgraded earnings guidance for the second half by over 30% at the EBIT line (to midpoint) as strong demand for materials supports earnings. We talked about the space in the AM report today, and BSL echoed our view that the building materials market is tight with the Australian steel business seeing improving conditions through the half .

BlueScope also manufacture a hot rolled coil (HRC) product, used to make a variety of other goods, which has seen a sharp rise in prices helping boost margins and the earnings outlook with manufacturing seeing swift growth out of CVOID slowdowns. Despite a stronger AUD weighing on earnings, the end result is a pretty strong beat by BSL today,  however the stock closed little changed, giving up early strength. A number of analysts had been talking up BlueScope’s chances for beating expectations, the latest was Macquarie just a fortnight ago so the upgrade was largely baked in.

BSL
We prefer JHX in the materials space, being neutral BSL here
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BlueScope Steel (BSL)
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