What's happening with the Boral (ASX:BLD) share price?

The Boral share price is bouncing around in morning trade. We look at the latest from the ASX 200 construction materials company.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published April 15, 2021 11:25 am AEST

The Boral Limited (ASX: BLD) share price is bouncing around in early morning trade, currently up 0.3%.

Below, we take a look at the S&P/ASX 200 Index (ASX: XJO) listed building products and construction materials company's latest market announcement.

Two men and a woman in high vis gear on a Construction site — Image Source: Getty Images

What did Boral report this morning?

The Boral share price is edging higher after the company reported it is studying various options for its North American fly ash business. Those options include a potential joint venture (JV), strategic alliance, divestment to a third party or continued ownership

If you're not familiar, fly ash is a byproduct of coal combustion. It's mainly used to improve the durability of concrete.

Commenting on the plans for its North American fly ash business, Boral's CEO Zlatko Todorcevski said:

We have conducted a detailed study of the US fly ash industry and remain confident in the long term demand dynamics for the industry, including significant incremental demand growth potential from the US government's proposed new infrastructure program.

United State's President Joe Biden has pledged to spend some US$2 trillion to revamp the US economy and upgrade the nation's ageing infrastructure. That, as Todorcevski points out, will see a boost in the demand for concrete and fly ash.

Addressing the US shift to renewables and away from coal-fired power, Todorcevski continued:

New opportunities for supply exist from harvesting landfills, imports and natural pozzolans, which we expect will more than offset the decline in fresh fly ash supply as the US transitions away from coal fired power generation. As we continue to build our alternative supply strategy, strategic alliances and opportunities for partnership will be considered in parallel with divestment options or continued ownership.

The company said it has appointed advisors to assist with the study of its US fly ash business. It will provide an update when there is material progress or with its full year results in August, whichever comes sooner.

Earlier this month, on 1 April, the Boral share price got a big lift on a separate announcement related to its US businesses. That came after the company reported it had completed the sale of its 50% share in the USG Boral joint venture to Gebr Knauf KG for US$1.02 billion.

Boral share price snapshot

Boral shares have performed strongly over the past 12 months, up 120%. That compares to a gain of 28% on the ASX 200.

So far in 2021, the Boral share price is up 20%.

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