BlueScope Steel boss seeing upside to ‘complete turmoil’ of Donald Trump’s pro-growth agenda

The boss of BlueScope boss has held firm that the US is the ‘best market’ to be in right now despite having no clear read on how ruthless President Donald Trump will be on Australian steel imports.

Speaking for the first time since the 25 per cent metals tariffs were declared, chief executive Mark Vassella indicated there were pros and cons to the protectionist, pro-local growth agenda of the new Trump administration.

“Having been there a week or so ago, the first thing I’d say is the place is in complete turmoil. The new administration has certainly turned Washington DC on its ear. So I think that’s just going to take a little bit of time to settle down,” he said.

“But if you look at the underlying demand that we see across the country, if you think about the potential for reinvestment and the confidence that will come from some of the policies that the new administration is putting in place, I still think we’re really well positioned for that.

“I’m still confident that the US is the best steel market in the world to be invested in.”

ASX-listed BlueScope is the largest steelmaker in Australia and the fifth largest steelmaker in the US.

While it touts having a 30-yar presence stateside with some 4000 workers on the ground, it exports between 200,000 tonnes to 300,000 tonnes per year to North America, leaving it exposed to potential financial hits from tariffs.

BlueScope made assurances it was “well positioned” to deal with the looming financial burden on the assumption new tariffs would drive up steel prices, that it would in turn also benefit from in the US.

Nonetheless Mr Vassella said the company was trying to see whether Australia would be afforded the same exemption it received in 2018 following successful negotiations by former Prime Minister Malcolm Turnbull.

The uncertainty regarding tariffs has seemingly not shaken investors.

Shares in the company were up more than 11 per cent on the result on Monday after releasing financial results for the six months to December.

Analysts at Barrenjoey called out the period as a “solid half” and noted BlueScope’s earnings before interest and tax of $309 million, at the top end of a $270m to $310m guidance range.

But a weaker steel market still weighed on the business.

Net profit after tax fell from $439.3 million in the last six months of 2023 to $179.1m for the last six months of 2024.

BlueScope’s famed ‘Colorbond’ product grew substantially over the half, with sales up 9 per cent.

Mr Vassella said Australians were “renovating and extending” rather than building new homes.