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BlueScope Steel Sees Demand Strengthening in Global Steel Markets

  • Friday, November 15, 2013
  • Source:

  • Keywords:Steel
[Fellow]
Australia's BlueScope Steel sees some encouraging signs of improving demand in the steel market, with better conditions at home, ongoing improvements in the US and continued strength in Asia, managing director Paul O'Malley said at the company's annual general meeting on Thursday.
 
Of the company's building products division, O'Malley said, "We are seeing continuing strong performance in Thailand, Malaysia and Vietnam, and momentum is gathering in our North American coated products business."
 
He said the company is seeing softer trading conditions in Indonesia due to currency depreciation, but he expects growth to resume in the medium term.
 
"Overall, the building products business is well positioned to tap the anticipated strong growth in demand for building and construction and the home appliances sector in the Asia Pacific region," he said.
 
BlueScope's Global Building Solutions division -- which produces a range of custom engineered steel buildings such as warehouses and factories, as well as steel building components -- also saw strong earnings in North America, during the peak summer building season.
 
Conditions were similar in Asia, however demand was softer in China, O'Malley said.
 
O'Malley said that while the market for steel in Australia is slightly better in the second half of the year than the first half, generally it operating conditions remain challenging.
 
Recent improvements in residential housing approvals and house price rises are good leading indicators for the performance of the important residential construction end-use market. However, non-residential construction and manufacturing may take longer to improve as they are more dependent on the depreciation of the Australian dollar, he said.
  • [Editor:editor]

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