Canada’s two leading steelmakers Stelco & Algoma have recently announced Oct-Dec 2022 quarter & 2022 & nine month results, which reflect severe deterioration in performance in last quarter. However with huge recovery in North American HR prices, both are expecting revival in coming quarter-------------------------------Stelco 2022 PerformanceShipping Volume – 2.627 million net ton, down 2% YoYAverage Selling Price per net ton – CAD 1,261 per net ton, down 14% YoYRevenue – CAD 3.463 billion, down 16% YoYOperating income – CAD 1.085 billion, down 45% YoYNet income – CAD 0.997 billion, down 38% YoYAdjusted EBITDA – CAD 1.193 billion, down 42% YoYAdjusted EBITDA per net ton – CAD 454, down 41% YoY-------------------------------------Algoma Steel Q3 PerformanceShipment - 458,341 net ton, down 17% YoYRevenue – CAD 567 million, down 47% YoYNet Loss - CAD minus 70 million, up 157% YoYAdjusted EBITDA – CAD minus 35.9 million, down 108% YoYHamilton Ontario based integrated and independent steelmaker Stelco Holdings Executive Chairman & Chief Executive Officer Mr Alan Kestenbaum said “In 2022, Stelco delivered, once again, the highest Adjusted EBITDA margin in the North American steel industry. The fourth quarter was challenged by lower sales prices, shorter lead times and higher costs primarily due to increased input costs, a triple whammy. Now, however, we are seeing a reversal of all of these factors with rising steel prices, as demonstrated by the CRU HRC benchmark having already increased by more than 37% from its early-December low, lengthening lead times, and input costs dropping significantly, all which should be reflected in the performance of the coming quarters.”Sault Ste Marie Ontario based leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel CEO Mr Michael Garcia said “I have been disappointed by the level of production and shipments in the last two quarters. As such, my management team and I have been laser-focused on rectifying these shortfalls and we believe the challenges experienced over the prior quarters are now largely behind us, and our facilities are returning to normal production levels. We are also encouraged by the recent rebound in North American hot rolled coil steel prices and continued robustness in plate pricing, which are supported by forward curves reflecting an expectation of stability as global demand recovers.”
Canada’s two leading steelmakers Stelco & Algoma have recently announced Oct-Dec 2022 quarter & 2022 & nine month results, which reflect severe deterioration in performance in last quarter. However with huge recovery in North American HR prices, both are expecting revival in coming quarter-------------------------------Stelco 2022 PerformanceShipping Volume – 2.627 million net ton, down 2% YoYAverage Selling Price per net ton – CAD 1,261 per net ton, down 14% YoYRevenue – CAD 3.463 billion, down 16% YoYOperating income – CAD 1.085 billion, down 45% YoYNet income – CAD 0.997 billion, down 38% YoYAdjusted EBITDA – CAD 1.193 billion, down 42% YoYAdjusted EBITDA per net ton – CAD 454, down 41% YoY-------------------------------------Algoma Steel Q3 PerformanceShipment - 458,341 net ton, down 17% YoYRevenue – CAD 567 million, down 47% YoYNet Loss - CAD minus 70 million, up 157% YoYAdjusted EBITDA – CAD minus 35.9 million, down 108% YoYHamilton Ontario based integrated and independent steelmaker Stelco Holdings Executive Chairman & Chief Executive Officer Mr Alan Kestenbaum said “In 2022, Stelco delivered, once again, the highest Adjusted EBITDA margin in the North American steel industry. The fourth quarter was challenged by lower sales prices, shorter lead times and higher costs primarily due to increased input costs, a triple whammy. Now, however, we are seeing a reversal of all of these factors with rising steel prices, as demonstrated by the CRU HRC benchmark having already increased by more than 37% from its early-December low, lengthening lead times, and input costs dropping significantly, all which should be reflected in the performance of the coming quarters.”Sault Ste Marie Ontario based leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel CEO Mr Michael Garcia said “I have been disappointed by the level of production and shipments in the last two quarters. As such, my management team and I have been laser-focused on rectifying these shortfalls and we believe the challenges experienced over the prior quarters are now largely behind us, and our facilities are returning to normal production levels. We are also encouraged by the recent rebound in North American hot rolled coil steel prices and continued robustness in plate pricing, which are supported by forward curves reflecting an expectation of stability as global demand recovers.”
