Today, BlueScope Steel announced that it is optimistic about the coming times and expecting a return to profit in 2009-10, mainly on the back of a surge in steel prices.

The largest and top-ranked steel manufacturer in Australia recently posted a first-half loss of $28 Million, contrary to the market expectations which pegged the figure to a loss of $14 Million for the six months up to December 31,
2009.

The result has been a disappointment when compared to the earnings of $407 Million posted for the previous year's same six months.

"After a tough period across all our businesses, we are pleased to report a more positive trend in demand and pricing and expect a profit in the second half. We expect to deliver a small reported profit for the full year, largely due to continued improvement in domestic/export demand conditions, improved steel prices (and) further cost reduction initiatives", said Chief Executive Paul O'Malley.

Shares of the company today recorded a slip of 5.9% to hit a five-month low of $2.41.