Steel Mills

Algoma foresees narrow profit (or loss) in fiscal Q2'25
Written by Michael Cowden
September 27, 2024
Canadian flat-rolled steelmaker Algoma predicts it will be roughly breakeven on an adjusted EBITDA basis in the second quarter of its fiscal year.
The Sault Ste. Marie, Ontario-based company expects adjusted EBIDTA in the quarter ended Sept. 30, 2024, in a range from a gain of $5 million CAD ($3.7 million USD) to a loss of $5 million CAD.
The company said that figure includes insurance proceeds of $20 million CAD, according to earnings guidance released on Thursday.
Recall that Algoma reported a profit of $6.1 million CAD in fiscal Q1’25.
The steelmaker also expects Q2’25 shipments of 510,000 to 520,000 short tons (st). That’s above the approximately 503,000 st it shipped in its fiscal Q1’25.
“Our operations are performing in line with expectations for the fiscal second quarter, despite operating against a backdrop of challenging market conditions for steel demand and pricing,” Algoma CEO Michael Garcia said.
“Operationally we are well-positioned to capitalize on opportunities as market fundamentals improve and demand rebounds,” he added.
Algoma makes hot-rolled coil, cold-rolled coil, and plate. Prices for sheet products fell to year-to-date lows in July before recovering over the last two months, according to SMU’s pricing records. Plate prices, in contrast, have continued to decline.
Garcia also noted that “commissioning activities” for Algoma’s two new electric-arc furnaces (EAFs) remain on track to begin by the end of calendar year 2024.
Algoma plans to ramp up EAF output in 2025 while also continuing to operate its one active blast furnace, basic oxygen furnace, and coke ovens. The company has said it expects to convert fully to EAF production in 2026.

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...

AHMSA drama deepens as drawn-out bankruptcy slowly progresses
A former CEO goes to court for swiping tin. An OEM distributor slams the bankruptcy trustee for failing workers and creditors. The steelmaker fires back. Angry employees demand back pay as tensions rise in Monclova's steel saga.

Cliffs aligns with US critical mineral policy, moves forward with DOE-funded projects
Cleveland-Cliffs is positioning itself as a key player in America’s push for industrial independence.

SDI execs tout progress on Mississippi biocarbon facility
SDI shipped the first product from its biocarbon facility in Columbus, Miss., in September as the project continues to accelerate.

SDI profits soar in Q3’25 amid ‘record’ steel shipments
Steel Dynamics Inc.’s third-quarter profits jumped year over year as the company saw “record” quarterly steel shipments