Ann: Trading Halt , page-48

trading update doesnt give you an indication when things will turn around. Them suckers who bought in the last raising should be mightly unimpressed.

Trading update

Global market conditions remain challenging, although BlueScope Steel has seen the deterioration in domestic sales volumes that emerged towards the end of 2008 level out in March and April of 2009 at low levels, with de-stocking abating. Current domestic and export prices are generally below those in the six months ended 31 December 2008.

BlueScope Steel continues to reduce its inventory levels. The Company had inventory at 31 December 2008 of A$2,816 million, including A$219 million of pre-tax net realisable value provisions as a result of the significant decline in realised prices. While the Company continues to actively reduce its inventory levels, based on current steel selling prices an additional A$100 to A$140 million of after-tax net realisable provisions may be required in the six months ending 30 June 2009.

Given current market conditions, it is expected that pricing of raw materials supplies,principally coking coal and iron ore, will be lower upon these raw material prices being reset from July 2009.

Progress on the No. 5 blast furnace reline is proceeding to schedule and budget. Consistent with BlueScope Steel's focus on optimising production to meet demand and target inventory levels, it is likely that BlueScope Steel will defer the start-up of the No. 5 blast furnace following completion of the reline, subject to market conditions. It will take one to two months to commission the furnace prior to re-start.