Algoma anticipates an increase in steel shipments

Algoma Steel, a Canadian integrated steelmaker, anticipates an increase in steel shipments for the current quarter compared to the previous year.

They expect to ship between 550,000 and 560,000 short tons, marking a potential 4.2% rise from the same period last year. Algoma plans to commission a new inline shear at its plate mill in August and aims to increase steel plate production by 15-20% over the next three quarters.

They will also undertake a planned outage in April 2024 to upgrade the hot mill's drives. Algoma is constructing two electric arc furnaces to reduce carbon emissions, with the first furnace expected to start operating by the end of 2024. However, increased costs and supply chain issues have caused delays.

Algoma's average realized price of steel decreased by 34% in the fourth quarter of fiscal 2023, resulting in a loss of C$20.4mn compared to a profit of C$242.9mn the previous year.