Algoma Steel Group Inc., a key player in the Canadian steel industry and a prominent producer of hot and cold-rolled steel sheet and plate products, has announced its guidance for the fourth quarter ending December 31, 2024. Despite facing challenging market conditions, the company remains focused on operational excellence, specifically in its plate business, where production has continued to show positive growth.
For Q4 2024, Algoma estimates total steel shipments to fall between 545,000 and 550,000 metric tons, reflecting the company's stable throughput despite the economic headwinds. However, the company anticipates a challenging financial outcome for the quarter, with adjusted EBITDA expected to range from a loss of $55 million to $65 million. This projected dip in earnings is indicative of broader macroeconomic uncertainties and fluctuating market conditions that continue to affect the steel sector, impacting pricing and demand.
Algoma's CEO, Michael Garcia, acknowledged the difficulties in the steel market but emphasized the company’s resilience, especially within its plate business, which has shown consistent growth in production. Despite ongoing market volatility, Algoma remains confident that as macroeconomic conditions stabilize, the company will be well-positioned to capitalize on improving fundamentals in the industry.
