BlueScope Shares Retreat On US Tariff Threat

Posted on | by Todd | Leave a Comment on BlueScope Shares Retreat On US Tariff Threat

Shares of BlueScope Steel rose to an eight-year high of $16.80 just after the ASX open today.

However, after Mr Trump’s announcement earlier to impose sweeping tariffs on imported Steel and Aluminium, BSL shares have slipped back to $16.35.

In its current form, the legislation would put a 25% tariff on the cost of imported steel to the US, regardless of the country of origin.

BSL is the sole exporter of Aussie steel to the US market which is worth about US$130 million per year.

Our ALGO engine triggered a buy signal for BSL on February 6th at $14.15.

At this point, we suggest that investors either exit their long positions outright, or look to sell the $17.00 calls into April for 42 cents to enhance portfolio returns.

BlueScope Steel

 

 

Algo Buy Signals – AWC & BSL

Posted on | by Leon Hinde | Leave a Comment on Algo Buy Signals – AWC & BSL

Recent Algo Engine buy signals in BSL and AWC have performed well, with prices rallies of 20%+ in the past few months.

China has been ramping up production of both alumina and aluminium in the lead-up to potential capacity cuts. Alumina Ltd (AWC) is potentially the largest beneficiary, given it is a pure-play on the industry.

Rio Tinto and South32 also seem well-placed to benefit. We will reconsider these names on the next Algo Engine buy signal.

Chart – BSL
Chart – AWC