** Jefferies updates steel producer BlueScope's BSL.AX forecast to reflect improved steel market conditions

** However, maintains "Buy" rating with price target of A$30/share

** Says U.S. spreads continue to underpin the earnings upside, with a spot U.S. spread of $545 per ton buoyed by recent recovery in demand and positioning ahead of tariffs

** Jefferies sees cost-out and growth projects supporting a mid-cycle EBIT of ~A$1.9 billion, but current valuation significantly discounts this higher earnings base

** Stock up 21.5% YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))