Algoma Steel reports output improvement this year

Algoma Steel Group Inc. says its steel output has rebounded early this year as its steel plate mill has “returned to its historical production levels.”

Algoma, based in Sault Ste. Marie, Ontario, points to the production rebound in an earnings guidance news release for its fiscal year 2022 fourth quarter, which aligns with this calendar year’s first quarter.

“Fiscal 2023 fourth-quarter total steel shipments are expected to be in the range of 555,000 to 565,000 tons, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be in the range of CA$25 million to $30 million,” the company writes.

“We anticipate that our shipments for the fourth fiscal quarter will align with our earlier projections now that our plate mill has returned to its historical production levels," Algoma CEO Michael Garcia says. "As expected, our adjusted EBITDA is directionally higher compared to the December quarter, due to lower costs resulting from stable operations and increased productivity.”

Garcia also says market conditions have worked in Algoma’s favor early this year, saying, “We are pleased to note that steel prices are presently at a nine-month high. Attractive market conditions, combined with our consistent operations, are likely to significantly enhance our profitability as we head into fiscal 2024."

He continues, “We are excited about the progress made so far on our strategic electric arc furnace (EAF) project as the building gets erected, shaping the skyline of our steelworks. While this marks a key milestone, we continue to diligently execute the project on time and on budget as we work towards our goal of a mid-2024 start-up.”