Oct 29 (Reuters) - Shares of Bluescope Steel on Tuesday were on track for their worst day in more than 20 months after the Australian producer slashed its underlying earnings forecast for the first half of fiscal 2025 due to a lacklustre global steel market.

Shares of Bluescope were down as much as 7.8% at A$19.54, as of 2323 GMT, and on track for their worst day since February 2023, if losses hold. The company's stock touched levels not seen since early September this year, while the broader benchmark index was up 0.4%.

Bluescope now expects its underlying earnings before interest and tax $(EBIT)$ between A$270 million ($177.63 million)to A$310 million, lower than its prior forecast of A$350 million to A$420 million.

The global steel market has been affected by record levels of steel exports from China, higher costs as well as uncertainty regarding the timing of further U.S. rate cuts and the presidential election, the company said in statement.

"Whilst these pressures are impacting performance in the near-term, we are confident in BlueScope's resilience, underpinned by a robust balance sheet, diversified business model and strong operating disciplines," Chief Executive and Managing Director Mark Vassella said.

For the first half of fiscal 2025, the company now expects its North American operations to deliver numbers slightly lower than half of what were reported in the second half of fiscal 2024.

The company said it aims for an improvement in its annualised earnings by targeting around A$200 million in cost-saving and productivity initiatives across the group.

($1 = 1.5200 Australian dollars)

(Reporting by John Biju in Bengaluru; Editing by Sherry Jacob-Phillips)

((John.Biju@thomsonreuters.com;))