Ann: Preliminary unaudited FY21 underlying EBIT of approx $1.72Bn, page-12

Being in steel industry I should have picked this one up but hadn't. My fault, but at this point I am wondering where this will head. I will see if I can help any of you out make your decision.

A bit of market info for you all from a person in the industry ( not a company insider ) . I buy steel for what I do.

Demand for steel is still very high, but fragmented. There is genuine increase in production from certain sectors that are benefiting from government construction contracts and more localised vacationing, such as caravan manufacturers. There is also an increase of buying from a lot of businesses out of fear of not being able to acquire the material. This includes businesses without an increased turnover as well as the above mentioned. So there is a lot of hoarding going on at the moment.
Bluescope is unable to keep up with production and that is having a negative effect and further propelling fear into availability, but it is also pushing others to secure steel from foreign mills. This demand from genuine consumption and fear is driving the prices further up and creating a loop. Prices are moving up next quarter.
From my perspective running my business has become a nightmare. Decisions on passing on the costs, purchasing at higher cost, locking into future commitments from distributors at premium... all this while trying to compete with imported product and countless other small/medium businesses. Keep in mind 30% increase to local is not the same as 30% increase to imported. 30% on $1 vs 30% on $2.....
To add to the problem, we have the current lock downs which are seriously now affecting the economy. This and the last lock down in Victoria have been felt considerably. Each time we go into a lock down, our turn over drops. As we come out and think we start to recover, we go into yet another lock down. This will not end well for many businesses.
Many of those that have bought high amounts of material at high, may find them selves struggling to recover the high costs.

So to summarise:
Market demand high, but may be based on a paradoxical situation that may result in a collapse. To put it into perspective... by next quarter prices will have more than doubled than pre covid. There is still a bit of steam left but that is not sustainable, and can't be passed in full to consumer. My sentiment is ...uncertainty

This is just information for those holding or considering what to do. I am not saying sell, hold or buy.
Just info for you all.