The second largest Australian steelmaker OneSteel expects its earnings for the first half of the financial year 2011-12 to be negatively affected by the recent severe fall in iron ore prices and the rapid increase in the value of the Australian dollar.
According to the OneSteel statement, the company has revised down its earnings estimates for November and December due to the recent decline in iron ore prices, which are now around 30 percent below the approximate A$170/mt level (62 percent Fe) of three weeks ago.
OneSteel now expects its first half profit after tax to be in the range of A$55 million to A$75 million.