Algoma Steel looks toward Canadian-centric future

Algoma Steel Group Inc. has issued guidance warning of losses in the fourth quarter of 2025. In the news release announcing the guidance, the recycled steelmaker’s CEO makes remarks indicating the company cannot rely on the reopening of a tariff-free United States market.

Sault Ste. Marie, Ontario-based Algoma has invested heavily this decade to convert its blast furnace/basic oxygen furnace (BOF) complex into a 3 million-ton-per-year scrap-fed electric arc furnace (EAF) steelmaking campus.

“We are encouraged by the ongoing ramp-up of the first unit of our EAF project, which is now operating six days per week, and we remain on schedule with the second unit,” Algoma CEO Rajat Marwah says.

“As we move toward completing our transition to EAF steelmaking during the current quarter, we continue to optimize our existing assets and advance discussions with potential partners to expand our finishing capabilities. This strategy is deliberately aligned with Canada’s national interest—strengthening domestic steelmaking capacity, supporting critical infrastructure and defense supply chains and reinforcing Canada’s long-term industrial competitiveness.”

Algoma’s focus on Canadian markets has become necessary with the placement of 50 percent tariffs on imports of Canadian steel by President Donald Trump in 2025. Before tariffs and its EAF conversion project, 60 percent of Algoma’s steel products were shipped to the U.S., according to the company's 2024 sustainability report.

“The U.S. steel market remains largely closed to us, and broader market conditions continue to present headwinds," former Algoma CEO Michael Garcia said four months ago regarding the situation.

By that time, Algoma had secured funding from the governments of Canada and Ontario to help it attempt to overcome the change in cross-border trading circumstances.

“Our fourth quarter results were in line with expectations, reflecting the continued impact of steel tariffs and the previously announced wind-down of our blast furnace operations, which are expected to conclude in the coming days," Marwah says.

From October to December 2025, Algoma's total steel shipments for the quarter were in the range of 380,000 tons. The company predicts it lost between CAD$95 million to CA$105 million ($68.5 million to $75.7 million), as measured by adjusted earnings before interest, taxes, depreciation and amortization, in the final quarter of last year.