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
Nippon requests Japan’s government restrict steel imports from China
Nippon Steel and other Japanese steelmakers are lobbying for the Japanese government to limit imports of Chinese steel, according to a report in Reuters.
SSAB taps Sjöström as new president, CEO
SSAB has appointed Johnny Sjöström as president and CEO of the Swedish steelmaker.
ArcelorMittal Q2 earnings dive, Mexican strike hits profits
ArcelorMittal’s earnings fell precipitously from a year earlier as the company said current market conditions are unsustainable.
Nippon withdraws from JV with China’s Baosteel
Japan’s Nippon Steel announced it was withdrawing from a joint venture (JV) with China's Baoshan Iron & Steel (Baosteel) that served the Chinese automotive industry.
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 […]