BlueScope expects its Australian earnings to double in July-December, relative to January-June, because of increased domestic steel demand, the company told investors on 26 October.
It expects increased demand to offset weaker-than-expected steel price spreads, the company added.
BlueScope sold 1.7 million tonnes of Australian steel in January-June, up by 4.7% on the year, data from its 2026 annual report show. Domestic buyers accounted for 72% of its Australian sales over that period.
BlueScope’s earnings update comes just one day after Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter warned that domestic demand is unsustainably high.
“At the moment we have got a bit too much demand, relative to what we can sustainably supply where inflation is low and stable,” Hunter said in a 60 Minutes interview. “What the [RBA’s Monetary Policy] Board is trying to do with … interest rate rises is to … bring demand back down … so that it rebalances with supply,” Hunter added.
Australia’s annual consumer inflation rate reached 4% in August, largely because of fuel and electricity price increases, data from the Australian Bureau of Statistics (ABS) show. Australians expect the country’s inflation rate to remain above the RBA’s target for an extended period, recent surveys show.
“We hear that from [the RBA’s community] liaison, and we have a survey, the BOSS survey, … which shows that [an] increasing share of businesses [think] that maybe three to three and a half percent inflation is the new normal,” RBA Deputy Governor Andrew Hauser said on 21 October.
Australian consumers’ two-year forward inflation expectations also stood at 6.2% over 12 – 18 October – higher than at any point since early September, survey data from ANZ and Roy Morgan show.
The RBA’s Monetary Policy Board will meet over 2-3 November to vote on adjustments to its cash rate target. It voted to lift its cash rate target from 4.35% to 4.6% on 30 September, largely because of high fuel prices, investment, and capacity constraints.
“[The Board is] committed to tackling inflation and getting inflation down … They’re absolutely committed to that,” Hunter said. “[It is] not looking to drive the economy into a recession or anything like that. But we have got to get inflation out of the system, and that’s really important right now,” Hunter added.
By Avinash Govind