The Bull

Monday 18

February, 2019 5:06 AM

Power prices still concern BlueScope Steel

Power prices still concern BlueScope Steel

BlueScope Steel has flagged continuing concern over power prices and reliability following the failure of the Turnbull government's national energy guarantee.

Share |

By AAP 23.11.2018 10:47 AM

BlueScope Steel has flagged continuing concern over power prices and reliability following the failure of the federal government's national energy guarantee.

"We were disappointed that the Australian federal government chose not to proceed with the planned National Energy Guarantee," BlueScope managing director Mark Vassella told the steelmaker's annual general meeting in Sydney on Friday.

"We thought this policy had real potential to deliver less volatile electricity prices and greater reliability of supply, while also cutting emissions."

Mr Vassella said rising gas and electricity prices, as well as supply issues, would hamper the competitiveness of BlueScope's Australian manufacturing operations.

"The company's objective is to seek policy that ensures energy supplies are reliable, affordable and contribute to meeting Australia's Paris commitments," Mr Vassella said.

"We also seek policy that encourages global reductions in emissions from the steel industry, and does not contribute to carbon leakage, in which steel production shifts to other jurisdictions with no environmental benefit."

The national energy guarantee was formulated this year but abandoned amid opposition from conservative MPs shortly before Malcolm Turnbull was ousted as Prime Minister by his own party.

Opposition leader Bill Shorten said this week that Labor would revive the policy if elected next year.

Mr Vassella said BlueScope was heartened that government was still seeking to improve reliability.

Mr Vassella also said domestic sales volumes remained robust driven by continuing strength in both non-residential and residential construction, with the latter focused on alterations and additions, and new detached homes.

Shares in BlueScope jumped 3.38 per cent to $12.55 by 1045 AEDT.

  • Trump to get update on China trade talks

    US duties on $US200 billion worth of Chinese imports are set to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands

  • SA govt unveils Repat Hospital plan

    The South Australian government has unveiled its master plan to redevelop Adelaide's Repatriation Hospital.

  • US-China talks to boost Aussie market

    Australia's share market is tipped to open higher on Monday after optimism surrounding US and China trade talks.

  • The Week Ahead

    In Australia, the December quarter Wage Price Index release dominates the local agenda in the coming week.

  • ASX closes flat as more companies report

    The Australian sharemarket has managed to finish in positive territory as more companies reported earnings results.

  • Stocks to watch

    Stocks of interest at the close of trade on the ASX on Thursday, February 14.

  • Germany to let NATO use its cyber skills

    Germany is to join the ranks of NATO countries making its cyber warfare skills available to the alliance to help fight hacking and electronic warfare, officials said on Thursday.

  • Domain posts $156.4m loss as listings fall

    Domain's first-half loss has widened to $156.4 million after Sydney and Melbourne's stumbling property markets forced it to take a large non-cash impairment.

  • Farmer denies scaring vegans with gunshot

    A WA farmer who asked vegans to stop filming calves on his property and leave, then fired a shot into farmland, says he wasn't trying to scare them.

  • CommSec Daily Report Friday

    The local sharemarket is mostly flat so far in a choppy session of trade. The ASX 200 is marginally higher by 6 points or 0.1% to 6066 points towards lunch after trading in a narrow 18 point band...

Index: Points Change Percent


© Copyright All rights reserved.