I work for BlueScope Steel....currently we produce slab at $714/tonne...current market price for slab is $525!
We are worried next quarter that hot rolled coil will be $550!
HOT ROLLED COIL not slab...
BSL is moving simply because of speculation.
1) Nippon buy their share of the remaining parts. As it seems the steel industry currently has a strategy of mergers/acquisitions in light of current prices.
2) Some sort of merger with Arrium.
Pure speculation. Although add to the fact that BSL was significantly higher 4 years ago and we are not some penny explorer.
BSL won't see IO or coal prices until current contracts are finished.
Steel is not hot. BSL and Arrium may be atm, simply for the merger/acquisitions.
There are plenty (over twenty that I am aware of) blast furnaces idle and several shutting down. If steel was hot that simply wouldn't be the case.
COK is great value IMO. BSL should take them over.
COK Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
