Ord Minnett monthly recommends BSL "accumulate", page-41

GS

East Asian BOF spreads marginally decreased from last week to US$201/t, as flat finished steel pricing and minor increases in input costs saw spreads contract. Iron ore, scrap and freight costs all increased during the week, but were partially offset by lower HCC costs. East Asian EAF spreads fell US$5/t to US$166/t on higher scrap costs and flat finished steel pricing. We expect finished steel prices to resume their upward momentum in the coming weeks, expanding spreads to US$230/t in the medium term.

US EAF spreads increased US$2/t to US$344/t from last week’s 14-month low, led by higher finished steel pricing. We expect a recovery in East Asian finished steel pricing to have a positive impact on US prices over the coming months, and anticipate that spreads will ultimately recover to US$450/t.