Fund managers including L1 Capital, Blackwattle Investment Partners, Yarra Capital Management, Cooper Investors, Airlie Funds Management, Firetrail Investments, Ten Cap, Milford Asset Management, Tyndall Asset Management, Perpetual Asset Management, Pendal Group, Elston Asset Management, Wilson Asset Management, Investors Mutual Limited, Equity Trustees Asset Management, Ellerston Capital, Katana Asset Management, Pengana Capital Group, Alphinity Investment Management, Vertium Asset Management, First Samuel and WaveStone Capital have invested in BlueScope Steel Ltd (ASX:BSL).

Airlie and Wilson Asset Management describe BlueScope as a multi-lever story rather than a simple steel price call: a strong balance sheet, an expected free cash flow inflection as a peak capital expenditure period ends, and scope for higher, more consistent capital returns. Managers also cite the progressing US Coated Products turnaround, under-earning Australian and Asian businesses, and exposure to US manufacturing expansion. First Samuel and Airlie note the recent SGH and Steel Dynamics takeover proposal of around $32 per share as a valuation anchor.

WaveStone Capital warns that US steel spreads of around $800 per tonne are well above a mid-cycle range of $400 to $500, leaving earnings vulnerable as margins normalise. Pendal Group noted that a recent guidance upgrade reflected only already-known US spreads, while cost escalation in Australia is eroding efficiency gains and earnings elsewhere fell short of expectations.

BlueScope Steel Ltd., founded in 2002 and headquartered in Melbourne, Australia, is a global steel manufacturing company. It operates through five primary segments: Australian Steel Products (coated and painted flat steel), North Star BlueScope Steel (hot rolled coil via electric arc furnace), Buildings and Coated Products North America (engineered building solutions for non-residential construction), Coated Products Asia (metal coated and painted building products), and New Zealand and Pacific Islands (New Zealand Steel, Pacific Steel, and BlueScope Pacific Islands). The company specializes in producing and marketing tailored steel solutions across international infrastructure, construction, and manufacturing sectors.