Algoma Steel Group Inc. is poised to benefit from improving market fundamentals in the steel business, says Michael Garcia, chief executive officer of the Sault ste. Marie steelmaker.
"Fiscal 2025 second quarter total steel shipments are expected to be in the range of 510,000 to 520,000 tons," the company said as it released guidance for its fiscal second quarter ending Sept. 30, 2024.
Algoma's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is predicted to be around C$5 million to negative $5 million, including an initial $20 million recovery of insurance proceeds from major operational difficulties earlier this year.
“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," Garcia said in a news release.
"Operationally we are well-positioned to capitalize on opportunities as market fundamentals improve and demand rebounds.
"Importantly, we remain on track with our electric arc furnace project with commissioning activities expected to begin by calendar year-end.
"This milestone will mark the beginning of Algoma Steel's transformation into one of the most environmentally sustainable steel producers in North America," Garcia said.
