Fair enough. However, their export market is now finished so domestic would have to keep them afloat here. I believe the way the company is handling the redundancies (absolutely convoluted and long drawn out) is disgraceful and I do not see a future for domestic steel production for this particular company. The world has changed and I do not see economies bouncing back in any hurry to pay for overpriced steel. I would think it would be high risk lending money to a company in this position with no real forward plans and a looming carbon tax that will impact local manufacturing.
You cannot compare Onesteel to Bluescope anymore. Onesteel has a profitable business model and is making the changes/cuts necessary in regards to steel production, quickly and effectively. Iron Ore will become their main play.
BSL Price at posting:
55.9¢ Sentiment: None Disclosure: Not Held
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