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BlueScope Steel (ASX: BSL) share price falls 7% despite strategic renewal

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NS Bluescope Steel Ltd (ASX: BSL) Shares have fallen into the red on Monday and are trading at $ 21.65 per share at the time of writing.

This is a 5.87% drop from the open, S & P / ASX200 Index (ASX: XJO) Loss of about 2% today.

Let’s see what is going on here.

What about Bluescope Steel’s stock price today?

There is no major market news for the company today, but Bluescope Steel’s share price is The company gave the first day of an investor presentation today.

Today’s presentation follows the announcement of Bluescope’s Climate Change and Sustainability Report on September 14.

In the presentation, the steel giant took up “strategic updates” and revealed how he intends to tackle climate change and sustainability issues in the future.

For example, one of the five “major sustainability topics” outlined by the company will be “Financial Power for Long-Term Sustainable Growth and Profit.”

This includes the “First Five-Year Climate Investment Program of Up to $ 150 Million.” We also anticipate investing more than $ 1.5 billion in long-term business segments and “targeting 50 cents per share per year” in our dividend program, to name just a few.

Bluescope has summarized its “clear” strategy in three different areas: transformation (technology and climate change), growth (business), and delivery (revenue, etc.).

What are the other reasons for lowering Bluescope’s share?

Aside from the company’s long-term growth vision, another factor driving the price of Bluescope Steel today is the current price of iron ore in the commodity market.

A recent 2021 restraint on steel production from China, the world’s largest steel maker, has recently cratered steel prices.

Iron ore closed on Friday at $ 104.50 / ton, down 8%. This has fallen by about US $ 120 / ton or 50% since mid-July, well below the record high of US $ 230 / ton in May this year.

It is important to know that Bluescope is ASX’s resource share and has its own exposure to the production of commodities (steel in this case). As a result, its stock price can and does fluctuate in line with fluctuations in the broader commodity markets.

Given the nature of this relationship and the surge in iron ore prices since July, it’s clear what’s affecting Bluescope Steel’s stock price today.

Bluescope Steel Stock Snapshot

Bluescope Steel’s share price has risen 23% year-to-date. However, it has been struggling recently, with a 12% deficit last month.

Nonetheless, Bluescope’s share price has risen 67% in the last 12 months, above the broad index returns of around 25% over the past year.

BlueScope Steel (ASX: BSL) share price falls 7% despite strategic renewal

Source link BlueScope Steel (ASX: BSL) share price falls 7% despite strategic renewal

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