Investors are still backing BlueScope Steel Ltd (ASX: BSL), even after the company was reportedly ruled out of a major Australian steelworks deal.
The BlueScope share price is up 1.21% to $30.97 on Wednesday after fresh reporting on the future of the Whyalla Steelworks in South Australia.
It has been a strong period for the ASX 200 stock. BlueScope shares are now up around 28% in 2026 and about 36% over the past 12 months.
Let's take a look at the latest news surrounding the company.
Image source: Getty Images
Whyalla race narrows
According to The Australian, BlueScope and its international consortium partners are no longer in the bidding race for the Whyalla Steelworks.
South Australian Premier Peter Malinauskas said Queensland coal entrepreneur Matt Latimore's private company M Resources and India's Jindal Steel are the only shortlisted bidders.
A buyer is expected to be named over the next few months.
The state government placed the steelworks into administration in February last year. The business had been operated by Sanjeev Gupta's GFG Alliance.
BlueScope had previously been considered as a serious contender.
The company owns and operates the Port Kembla steelworks in New South Wales. It had joined forces with Nippon Steel, JSW Steel, and POSCO in a heavyweight international consortium.
At the time, BlueScope said it hoped to use its domestic operating experience and familiarity with Whyalla as it led the group through due diligence.
Why investors are holding steady
Investors don't seem too concerned about BlueScope missing out on Whyalla.
Buying the steelworks would have given the company a larger role in Australian steelmaking. But it also would have brought a complicated asset that may need serious money spent over many years.
Whyalla has attracted attention because of its role as a major regional employer and strategic industrial site. It has even been discussed as a possible hub for lower-emissions iron and steel production.
While those ideas sound appealing, turning them into reality would likely take a lot of capital, government support, and time.
And BlueScope already has plenty on its plate.
The company owns the Port Kembla steelworks and has major operations in North America, where its North Star business in Ohio has been a major contributor in recent years.
Why the stock keeps climbing
BlueScope's latest run has been hard to miss.
The stock is trading near the top of its 52-week range after a strong start to 2026.
The company is also one of the larger names on the ASX, with a market capitalisation of about $13.6 billion.
Even though today's gain is modest, it still stands out against the Whyalla headlines.
A missed acquisition opportunity can sometimes weigh on a stock, especially when investors had expected a company to stay in the race.
But in BlueScope's case, the market appears to be taking a different view.
