Aussie BlueScope rises; Jefferies says new furnaces may not add value but cut costs

BLUESCOPE STEEL

28/11/2025 01:24

Updates share moves throughout

** Shares of BlueScope's BSL.AX rose as much as 2.36% to A$24.290, their highest since August 22

** Stock advanced 5.5% in the month so far and is set for its strongest month since April

** Jefferies says steelmaker's Investor Day in New Zealand zeroed in on the economics of its upcoming electric arc furnace (EAF) mill

** Adds, the EAF may not be value accretive, but should trim fixed costs and offer downside protection at the cycle's trough

** BSL sees its NZ unit delivering a mid-cycle return on invested capital of ~14%, translating to ~NZ$140 mln ($80.11 mln) in EBIT, matching Jefferies' NZ$135 mln in FY28

** Brokerage keeps "Buy" call at A$28/shr price target

** Stock last up 1.9%, takes YTD gains to 29.3%

($1 = 1.7476 New Zealand dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by David Gregorio)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))