Steel Mills
Essar Steel Algoma Production in January Best Since 2014
Written by Sandy Williams
February 16, 2017
Essar Steel Algoma, under protection by the Companies’ Creditors Arrangement Act since November 2015, held its own in production and sales in January. January production surpassed 232,000 tons making it the highest single month production since September 2014. Improved selling prices and increased shipments brought in revenue of CAD $153 million in January for an adjusted EBITDA of $22 million for the month, $7 million higher than December. The company shipped an estimated 209,317 tonnes in January.
Essar Steel Algoma’s court monitor Brian Denega addressed in his Twenty-fifth Monitors Report a motion by Essar Capital to reopen the Sales Investment and Solicitation Process (SISP). Denega said in the report he does not believe there is a need to reopen the SISP. He suggests any party that is serious about acquiring or restructuring Algoma engage in Negotiations with the Term Lenders “rather than negotiating through the press, which tends to be not only unproductive but may well be harmful” to the CCAA proceedings.
The reference is in regards to a flurry of accusations that occurred between Essar Global Fund and Essar Steel Algoma and its Term Lenders after a letter from Essar Global was published in the press criticizing the SISP proceedings and requesting consideration as a bidder.
Collective bargaining commenced last week between the local unions and Essar Steel Algoma with a representative of the Term Lenders present for the discussions. The USW local has sought direction and advice from the court regarding engaging in discussions with Ontario Steel, an entity owned and controlled by Essar Global and favored by union workers. Denega strongly opposed the union’s motion, noting that Essar Global never submitted a formal bid for the company.
“Transactional discussions between Ontario Steel and the unions, where there is no concrete offer or proposal from Ontario Steel, much less one that has the necessary support of the term lenders and the consenting secured noteholders, will detract from this priority and would therefore be inappropriate and detrimental to Algoma’s restructuring process,” said Denega.
United Steelworkers Local 2251 intends to hold a strike mandate vote on Tuesday, February 28.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.
Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.
Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.
ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.
Ternium posts solid Q2, expects further shipment growth
Latin American steel producer Ternium delivered a solid performance in the second quarter of 2025. Performance was driven primarily by higher realized steel prices in Mexico, even as shipment volumes declined slightly across its regional portfolio.