By Aaditya GovindRao and Adwitiya Srivastava
(Reuters) -Shares of BlueScope Steel rose to a more than two-month high on Monday, buoyed by expectation that the Australian steelmaker’s U.S. business would gain from potential tariffs on all steel imports into the country.
The stock rose as much as 4% by 0234 GMT to hit its highest level since December 2, 2024 and was among the top gainers on the benchmark S&P/ASX 200 index, which was down 0.4%.
U.S. President Donald Trump said he would introduce new 25% tariffs on all steel and aluminium imports into the country, on top of existing metals duties, in another major escalation of his trade policy overhaul.
The largest sources of U.S. steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
Jefferies analysts said protectionism on the U.S. steel industry should provide a tailwind for the domestic prices of hot-rolled coil, a type of steel, and is positive for BlueScope.
They said they expect the tariffs to drag BlueScope’s Australian business lower by about A$80 million ($50.12 million) in the 2026 fiscal year, but should be an overall positive for the firm, given its large U.S. exposure.
North America was BlueScope’s biggest revenue-generating geography in fiscal 2024, having accounted for about 43.9% of its total sales. BlueScope operates its North Star steel mill in Ohio.
($1 = 1.5962 Australian dollars)
(Reporting by Aaditya Govind Rao and Adwitiya Srivastava in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)
