Steel Mills
Essar Steel Algoma Reports Operating Loss for Q1 FY 2016
Written by Sandy Williams
August 29, 2015
Essar Steel Algoma announced that first quarter FY 2016, ending June 30, 2015, closed with a positive EBITDA of CDN $12.4 million. Capacity utilization was at 90 percent and steel shipments of 632,000 tons were 19 percent higher year over year. Higher production and shipments, however, were unable to counter low pricing caused by dumped imports, said the company. EBITDA was less than half that the CDN $12.4 million reported in first quarter FY 2014. The pricing impact resulted in an operating loss of CDN $28.9 million for the quarter.
Canada Border Services (CBSA) initiated antidumping and countervailing investigations on steel plate from India and Russia in June, 2015. The Canadian International Trade Tribunal (CITT) found in its preliminary determination that the imports in question caused material injury or the threat of material injury to the Canadian steel industry. A final ruling by CBSA is due Sept. 8 and duties, potentially retroactive to June 10, 2015, are expected to be imposed.
President and CEO Kaylan Ghosh commented on the trade case, ““This past year dumped imports have wreaked havoc on North American markets, displacing domestic market share and placing downward pressure on price. Despite recovering demand, we are just now witnessing some price recovery and with the prudent application of trade remedies we anticipate the return of a level playing field.”
Essar Steel Algoma also announced that work has begun on the company’s comprehensive Modernization and Expansion Program.
No mention was made of a possible interest in buying the bankrupt US Steel Canadian assets. Speculation has been rampant that Essar Steel is a potential bidder.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!