Shares in Australia’s BlueScope Steel (ASX:BSL) experienced a sharp fall, with as much as a 3.3% decrease, marking their largest intraday loss since September 18th.

This drop follows a forecasting downgrade by analysts at Morgan Stanley, who downgraded the steelmaker’s status to ‘underweight’ from ‘overweight’.

The respected investment bank also reduced BlueScope Steel’s price target to A$18 from A$24.

Morgan Stanley suggests potential risks associated with a softer Australian residential construction market.

The fall in share price signifies the company’s lowest level since September 27th.

Prior to the slump, BlueScope Steel’s stock had enjoyed a 16% increase this year, based on the last closing numbers.

BlueScope Steel is a leading manufacturer and supplier of steel products and solutions, predominantly in the Australian market.