I own shares in Bluescope and recently have been thinking what path to take given recent decline in share prices. It seems there is a divergance in iron ore prices vs Steel. The major reason is that China, one of the mjor producers of Steel has decided to cut production (due to environmental effects?), hence reducing the demand for iron ore, pushing iron ore prices down (fall in FMG/RIO/BHP). 

However, since China produces the most amount of steel in the world and it has decided to reduce, there is a general reduction in steel, pushing Steel prices up, and hence the divergence.

Add to this the recent Congress Bill in US being presented to support major infrastructure projects, home building etc the future demand for steel looks bright.

Bluescope which presented a stellar earnings report recently is in a good position, since it has operations in USA (Northstar), Southeast Asia, India etc. China is not its only market.

Infrastructure expenditure is also the likely route most contries will take to kick the econies back in action coming out of COVID lockdowns.

I have decided to maintain my position in Bluescope as such. 

Any responses comments about my train of thought is most welcome.