BSL A BUY?

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Question asked 01/07/2022

BSL A BUY?

Hi James, Would appreciate your thoughts on BSL as a buy around these levels , is it in the buy zone like OZL with a price target over $20 ? Cheers Craig

Answer

Hi Craig,

BSL has suffered on concerns around a looming global recession which has led to a decline in steel prices. When looking at the forward curve of prices, futures are actually in backwardation meaning that future prices are lower than current spot prices, which aligns with the markets view around stalling global growth. I suspect BSL will track a very similar path to OZL, i.e. it will only rally if we see more positive news on the global economy. We are an ‘accumulate’ on OZL leaving room to add to our holding and that is the same approach we would advocate with BSL.

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BlueScope Steel (BSL)

LAST UPDATED 01/07/2022 14:18

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