International Steel Mills
Algoma Swings to Profit, EAF Project on Track
Written by Becca Moczygemba
August 11, 2023
Canada’s Algoma Steel Inc. reported better than expected results for its fiscal 2024 first quarter.
“Thanks to the dedicated efforts of our employees, we delivered results that were modestly ahead of our previously disclosed outlook,” Michael Garcia, Algoma’s CEO, said in a news release on Aug. 10.
The Sault Ste. Marie, Ontario-based steelmaker reported net income of Canadian $130.9 million (US$97.4 million) in its fiscal Q1’24 ended June 30. That is an 11.4% decrease compared to C$301.4 (US$ 224.3 million) in the year-ago quarter, but a swing from the loss of C$20.4 million in the prior quarter.
Though Q1’24 shipping volumes were up 5.9% year-over-year (YoY) to 569,433 tons, average realized steel prices were down 19% to $1,323 per ton.
Quarter ended June 30 | 2023 | 2023 | % Change |
---|---|---|---|
Net sales | $827.2 | $934.1 | -11.4% |
Net earnings (loss) | $130.9 | $301.4 | -56.6% |
Per diluted share | $0.85 | $1.49 | -43% |
Algoma said it continues to make progress on the construction of its two new electric-arc furnaces (EAFs).
The project that was initially announced in November 2021. Currently, the timing and budget are on par with the outlook provided in its fiscal Q4’23 earnings release. Commissioning of the first EAF is expected at the end of calendar year 2024, Garcia said.
Becca Moczygemba
Read more from Becca MoczygembaLatest in International Steel Mills
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Global steel production dipped in June
Global steel output eased 2% in June following May’s 14-month high, according to World Steel Association’s (worldsteel) latest release.
Union rejects proposal to end strike at ArcelorMittal Mexico
The local mining union has rejected a proposal to end the labor strike at ArcelorMittal Mexico’s Lazaro Cardenas mill and Las Truchas mine in Michoacán, Mexico.
NLMK mill targeted in Ukrainian drone attack
Novolipetsk Steel’s (NLMK) mill in Lipetsk, Russia, was the target of a raid by Ukrainian drones on Sunday, according to a Reuters report.
USS and Nippon clarify position on US trade case participation
U.S. Steel and Nippon Steel explained their position on USS’ participation in US trade cases should their proposed nearly $15-billion merger deal go through. The companies hope to close the deal by the end of the year.