Bluescope is getting hammered after its flags falling steel prices

A steel pour. John Moore/Getty Images

BlueScope shares are getting hammered on the ASX despite Australia’s largest steelmaker announcing improved first half results.

The company says it’s benefiting from good Australian residential building activity and a cheap dollar against the US dollar.

Bluescope expects full year earnings to be 20% higher.

However, the company told the market that recent falls in Asian and US spot steel prices could compress margins in Australia.

And this could mean a weaker second half.

BlueScope announced an underlying profit up 62% to $79.6 million for the six months to the end of December. Net profit after tax was $92.7 million, an $89 million improvement.

The company announced a fully franked interim dividend of three cents.

The share price is down more than 8% to $5.08.

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