Canadian steel producer Algoma Steel has announced that it has begun the permanent shutdown of its coke-making operations, marking a decisive step in its transition away from conventional integrated steelmaking toward electric arc furnace (EAF) production.
Shutdown of integrated operations
Laura Devoni, vice-president for human resources and corporate affairs at Algoma Steel, told local media that the shutdown of the company’s primary operations has commenced with its coke-making assets. She stated that iron-making and basic oxygen furnace (BOF) assets will follow in the next few days. The company said that a dedicated project team has been appointed to ensure the safe and orderly decommissioning of the assets.
Devoni noted that this development brings to a close Algoma Steel’s 125-year history as a conventional integrated steel producer and marks the beginning of a new chapter in which the company will produce steel exclusively via electric arc furnaces.
EAF transition speeds up
Algoma Steel stated that the shift to EAF-based steelmaking will significantly reduce its environmental footprint, with annual carbon dioxide emissions expected to decline by approximately three million metric tons. The company added that it is currently producing steel from EAF No. 2, which entered operation in the summer of 2025, while construction of EAF No. 1 is ongoing. Both furnaces are expected to reach full capacity later this year.
Negative financial guidance for latest quarter
Algoma Steel also provided guidance for the quarter ended December 31, 2025. Total steel shipments for the period are expected to reach 375,000-380,000 mt, while adjusted EBITDA is forecast in the range of negative $95 million to negative $105 million.
Commenting on the outlook, Rajat Marwah, chief executive officer of Algoma Steel, said that fourth quarter results were in line with expectations, reflecting the continued impact of steel tariffs and the previously announced wind-down of blast furnace operations.
