Australian steel maker BlueScope Steel Ltd
(ASX:BSL) expects to report a small loss for the first half of fiscal 2010.
The loss is primarily due, the company says, to the timing lag of improved steel prices flowing through from sales and improved demand.
The company says in the first quarter of the financial year 2010 it is starting to see moderate improvement in demand and prices stabilising in some markets.
BlueScope also commented on the Federal Government’s proposed Carbon Pollution Reduction Scheme, saying it is one of the biggest threats facing the Australian steel industry and itself in particular.
The company says it has grave concerns about the current design of the scheme and says it strongly believes that the cumulative net cost of the current proposal will be highly significant and material.
BlueScope estimates that the cumulative net cost to the company could be as much as $500 million from fiscal 2012 through to fiscal 2020 and potentially up to $1.4 billion if suppliers pass through all their carbon costs.
BlueScope Steel fell into the red in 2009 after four years of profits.
