News: UPDATE 1-Australia's BlueScope Steel raises earnings guidance

• Australia's Bluescope lifts earnings guidance
• Cites strong demand for its steel iron ore sands
• Also to take a A$65 million impairment

(Adds reasons for upgrade)

SYDNEY, Jan 24 (Reuters) - Australia's BlueScope Steel (BSL) said on Tuesday it expected to report first-half earnings higher than previously forecast due to a combination of stronger steel prices, higher iron ore export prices and cost reductions.

The company said earnings before interest and tax for the six months ended Dec. 31 would be around A$600 million ($455.22 million), up from previous guidance of at least A$510 million, representing a 160 percent increase from the same period the prior year.

BlueScope also said it would recognise a A$65 million impairment charge alongside its first-half results on Feb. 20 after reviewing the carrying value of its businesses.

The company cited stronger steel prices that in particular benefited its Australian Steel Products and New Zealand and Pacific Steel divisions.

The positive impact of stronger than expected iron ore prices on export iron sands exports also boosted profitability, according to the company.

International spot iron ore prices rose by more than 80 percent in 2016, mostly on the back of stronger-than-expected steel production in China.

The impairment charge relates to the company's China buildings business, where manufacturing sites are being reconfigured or closed, coupled with capital expenditure in iron sands and restructuring of the India engineered buildings business, Bluescope said.

($1 = 1.3180 Australian dollars)