Canada-based steel producer Algoma Steel has announced its guidance for the fourth quarter of the financial year 2023-24.
The company expects its total steel shipments to be in the range of 445,000-460,000 mt in the given period, lower compared to 516,068 mt in the previous quarter. The company’s adjusted EBITDA is expected to be CAD $30-40 million. In the fourth quarter, Algoma experienced an unplanned outage at its blast furnace at its coking facility, which will lead to a drop in production by 120,000-150,000 net tons and will significantly affect the adjusted EBITDA.
“We expect to close out our fiscal year on a high note, with steel production back to normal levels and our end markets looking strong. Demand for our products remains strong, and market prices for hot rolled coil have been on the rise. With a return to full production, we expect an improvement in our fiscal first-quarter results. Importantly, our electric arc furnace project remains on schedule and within budget, with commissioning activities expected to start by the end of 2024,” Michael Garcia, Algoma’s CEO, commented.
