S&P/ASX 200 Index (ASX: XJO) shares are down 0.053% to 8,598.4 points on Monday.
The ASX 200 materials sector had a lacklustre year in FY25.
The S&P/ASX 200 Materials Index (ASX: XMJ) fell 6.04% overall. Dividends offset the loss somewhat, with total returns at minus 2.3%.
The major miners were the biggest drag on the sector last year.
BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) suffered as the iron ore price fluctuated and ultimately weakened over the year.
But the materials sector encompasses much more than mining.
Here, we look at three ASX 200 materials shares and find out how one expert rates them for the new financial year ahead.
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Buy, hold, or sell? 3 ASX 200 materials shares
Courtesy of The Bull, Sequoia Wealth Management analyst Peter Day reveals his ratings on the following three ASX 200 materials shares.
Lynas Rare Earths (ASX: LYC)
Day notes that Lynas is the only significant rare earths producer outside China.
Lynas operates the Lynas Mt Weld mine in Western Australia and rare earths processing plants in Kalgoorlie and Malaysia.
This ASX 200 materials share has rocketed from $6.53 on 2 January to $8.41 on 3 July.
Day says:
We see a limited near-term earnings contribution from production.
Gross sales revenue of $123 million in the third quarter of fiscal year 2025 was down from $141.2 million in the second quarter.
Third quarter sales revenue in 2025 was up from $101.2 million in the prior corresponding period.
Day has just downgraded Lynas Rare Earths shares to a sell rating.
We have downgraded LYC on valuation grounds. Investors may want to consider cashing in some gains.
The Lynas share price is down 0.85% to $8.20 on Monday.
Amcor CDI (ASX: AMC)
Day says there is speculation among analysts that Amcor may consider asset sales as a result of its $8.4 billion merger with US Fortune 500 plastic packaging manufacturer Berry Global.
The global packaging business announced the merger on 19 November.
Amcor said the deal would deliver more than 35% adjusted cash earnings per share (EPS) accretion.
The company expects double-digit returns on investment after three years.
Day has a buy rating on Amcor shares.
He explains:
Asset sales could potentially improve margins and growth prospects. Asset sales could also lower gearing.
We expect this packaging giant to deliver adjusted earnings per share of between US72 cents and US74 cents in fiscal year 2025.
We also expect the company to grow earnings per share over next three years, with Berry synergies acting as the key driver.
This ASX 200 materials share is up 0.17% to $14.96 today.
BlueScope Steel Ltd (ASX: BSL)
BlueScope is an international supplier of steel products, mostly for the building and construction industries.
Day and his team have raised their earnings projections for BlueScope shares due to higher US steel price forecasts.
But they have a hold rating on the ASX 200 materials share for the moment.
The analyst says:
US tariffs are enabling higher US steel prices, but questions remain as to duration and efficacy.
Our US economists note that US consumer sentiment remains at low levels, as they're concerned about business, employment and income conditions.
Moderating US house prices is also seen as an early warning for a broader slowing in the US economy. We retain a neutral rating.
This ASX 200 materials share is up 1.22% to $24.39 today.
