BlueScope may close New Zealand steel plant

Australian steelmaker BlueScope reported A $ 96.5 million ($ 69.79 million) net profit for the fiscal year 2019-2020 to June 2020, down 91% from a year earlier. This includes a cashless A $ 197 million write-off for the New Zealand and Pacific Islands segment. Underlying net income was AU $ 353 million.

BlueScope's Australian Steel Division revenues were AU $ 305.1 million by Ebit, down 43% from the prior fiscal year. Steel spreads were narrowed by lower regional steel prices and higher raw material costs, while coke margins declined, the company explains. Domestic sales rose to 2.17 million tonnes, up 3% from a year earlier.

However, New Zealand and the Pacific Islands suffered a major pre-interest and tax loss of A $ 5.8 million, compared with A $ 80.6 million a year earlier. This was driven by lower steel prices, lower vanadium inputs, higher costs and the impact of the April production shutdown.

Vasella says if the New Zealand steel mill cannot reach A $ 30-50 million in manufacturing revenue, the Glenbrook steel mill could be shut down. The Glenbrook Steel Works produces long and flat products, mainly using local iron sand and coal to produce around 650,000 tonnes of slabs and billets per year.