Steel Mills
Winter Weather Slows Q3 Production for Essar Steel Algoma
Written by Sandy Williams
February 13, 2014
Essar Steel Algoma posted a net loss of 38.6 million for the third quarter FY 2014, ending December 31, 2013, compared to a net loss of $25.1 million for third quarter FY 2013.
Severe winter weather slowed incoming raw material shipments affecting production for the quarter. Steel shipments were 590,837 tons, down from 642,000 tons the prior quarter and down 9.9 percent from the same period a year ago. Sales of $436 million dropped 6 percent from Q2 due to lower production and margins.
The average selling price per ton was higher in the Q3, $666/ton versus $638/ton the prior quarter.
The outlook for 2014 is positive with an Algoma trade action against imported plate helping to recover pricing by $70/ton. Total shipments for FY 2014 are expected to be in the range of 2.4 to 2.5 million tons.
“We are encouraged by improving macro economic indicators for 2014 as demonstrated in recent increases to hot rolled coil pricing and a significant improvement in the pension solvency position. In the months ahead we expect reduced costs as benefits from our new iron ore contract materialize,” said CEO Kalyan Ghosh. When combined with the recent strategic additions to our management team and plans to improve productivity by a further 10-15% we are confident in our ability to realize a further $50 per ton cost reduction over the coming quarters.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
CRU: Tata Steel looks to shed 1,600 jobs in the Netherlands
The company said, “The challenging demand conditions in Europe driven by geopolitical developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance."
Reports: Federal funding for Cliffs’ project could be slashed
Elon Musk's DOGE is determining which Department of Energy grants to advance and which ones to terminate, according to several media outlets
Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.
Algoma looks to sell more steel in Canada in wake of Trump’s tariffs
The Canadian steelmaker said its absorbing higher tariffs as it moves forward.
Ancora abandons plan to take over leadership of USS
Investment firm Ancora Holdings Group has halted its play for U.S. Steel's board, citing Nippon Steel’s proposed bid for USS “gaining momentum.”