BlueScope has confirmed a massive 45 per cent drop in earnings at its Annual General Meeting.
CEO Mark Vassella said the steelmaker was expecting to see its earnings before interest and taxes for the first half of this financial year to be halved compared to January-June.
The last half-year pre-tax earnings were $499 million and a 45 per cent drop would equal around $275 million.
"The first half FY2020 outlook is softer than the prior half due to weaker commodity steel prices and spreads across our steelmaking businesses in the US, Australia and New Zealand," Mr Vassella said.
"However demand in BlueScope's major markets remains stable."
He said domestic steel volumes in Australia were "tracking slightly better than we expected".
Costs in the Australian businesses was also largely what was expected, he said.