BlueScope Gains on Proposed Anti-Dumping Levy: Sydney Mover
BlueScope Steel Ltd. (BSL) rose to its highest in almost 10 months after Deutsche Bank AG raised its earnings estimate for Australia’s largest mill saying it will benefit from a proposed anti-dumping duty on imported steel.
The stock climbed 4.4 percent to 48 Australian cents at the close in Sydney, its highest since November 21. The benchmark S&P/ASX 200 index rose 0.9 percent.
Australia may impose anti-dumping tariffs of as much as 15.45 percent on hot-rolled coil steel imported from Japan, South Korea, Malaysia and Taiwan after a complaint from BlueScope, the Australian Customs and Border Protection agency said in a notice on its website, citing preliminary findings.
BlueScope’s full-year net income may be boosted by A$14 million ($14.4 million) to A$39 million as a result, Deutsche Bank said in the note dated yesterday. The steel mill posted a net loss of A$1.04 billion in the year ended June 30.
“BlueScope remains our key pick of the steel sector,” Emily Behncke, an analyst at Deutsche Bank, said in the report. The company, which sold half of its building products units to Nippon Steel Corp. (5401) in August to pay debt, will also gain from “likely underestimated leverage to the Australian housing recovery and potential earnings upside from the U.S. recovery.”
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