BlueScope Steel profit forecast raised

Analysts have raised their forecasts for BlueScope Steel, Australia's largest steel-maker, after it reported a strong start to the year, but they warned the pace may not continue.

Goldman Sachs JBWere raised its fiscal 2007 net profit forecast for BlueScope by 12.7 per cent to A$616.9 million ($715.2 million) from its earlier forecast of A$547.2 million.

But it said hot rolled coil prices were starting to show some signs of weakness in the United States and there was a risk of that flowing through to Asian markets.

BlueScope owns New Zealand Steel which operates the Glenbrook steel mill south of Auckland.