The BlueScope Steel Limited (ASX: BSL) share price share price has fallen more than 8% today, making it one of the worst performers in the S&P/ASX 200 Index (ASX: XJO).
Looking at the overall performance of the ASX, the ASX 200 fell around 0.8% today.
The steelmaker has actually seen its shares fall by 11% this year, so its fall today represented a majority of the decline that it has seen in 2022.
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What's going on with the BlueScope Steel share price?
There was no material news out from the company today.
Interestingly, steel prices have been rising in recent days amid the Russian invasion of Ukraine.
According to reporting by Bloomberg, several large steel producers in Ukraine have closed because of the war. It's normally a top-five exporter of steel to the EU, so this could cause supplies to tighten further there. Russian steel producers are also facing difficulties to export.
Data from Kallanish Commodities shows that EU steel prices jumped 22% to 1,160 euros a tonne.
However, iron ore prices have also been increasing. Iron ore prices have reportedly reached six-month highs of US$156.
Broker thoughts
UBS has just released a note that acknowledged the increasing costs that BlueScope is facing, which is expected to hurt profitability in FY22 and FY23. But the broker still rates the business as a buy w9th a price target of $25.75 based on a slightly better outlook in the longer-term.
BlueScope share price snapshot and valuation
Based on UBS' latest estimates, the BlueScope share price is now valued at 8x FY23's estimated earnings.
