Bluescope Steel shares gain as China steel to be hit by US tariffs
Make us a preferred source
Make us a preferred source on Google
The news: Bluescope Steel was one of the best performing ASX 200 stocks in early trading, resisting a broad selloff across the market triggered by the Trump administration's tariff announcement.
The numbers: Bluescope shares, which temporarily rose by more than 2%, were up 0.71% to $21.44 by 10:35am AEDT.
The ASX 200 index was down more than 2%, with only seven companies in green.
The stock was buoyed by upgrades from Citi, which changed its rating from 'neutral' to 'buy' and lifted its target price from $21 to $24.
The context: Citi analysts said they prefer Bluescope to "iron ore driven miners". They see the steelmaker receiving tailwinds from expected steel output cuts in China, steel import tariffs and expanded infrastructure spend in the US, and earlier rate cuts in Australia.
The analysts noted that lower iron ore prices expected in the 2026 calendar year, plus lower China steel exports, should enable exports from Bluescope's Port Kembla operation to return to profit.
The source: Citi research
