Algoma Steel reports loss as tariffs, pricing weigh on results
SAULT STE. MARIE - Algoma Steel Group Inc. says Canada’s steel market is under increasing pressure from weakening prices brought on by tariffs and imports, but that its major retrofit of its furnace system should help with costs ahead.
SAULT STE. MARIE - Algoma Steel Group Inc. says Canada’s steel market is under increasing pressure from weakening prices brought on by tariffs and imports, but that its major retrofit of its furnace system should help with costs ahead.
The steel maker says Canadian producers are limited in what tariff costs they can pass on to customers in part because the market is based mostly on spot sales, which saw prices down over 20 per cent in the first quarter compared with last year.Â
The lower pricing, and tariff costs that totaled $10.5 million in the quarter, helped lead Algoma to a $139.9 million loss from operations for the quarter compared with a $3.1 million profit last year.
ARTICLE CONTINUES BELOW
The company says harsh winter conditions in the quarter delayed work on its electric arc furnace, but that it expects the first steel produced from the new system in the second quarter.
Algoma says the transformative shift from the old blast furnaces to electric will fundamentally improve its cost structure, enhance its resilience in turbulent market conditions, and set it up to deliver long-term value.Â
The roughly $800 million electric arc furnace project, supported by up to $420 million in federal funding, is expected to cut emissions by more than three million tonnes a year by 2030.
This report by The Canadian Press was first published April 30, 2025.
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