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 Performance

Shipping Volume – 2.627 million net ton, down 2% YoY

Average Selling Price per net ton – CAD 1,261 per net ton, down 14% YoY

Revenue – CAD 3.463 billion, down 16% YoY

Operating income – CAD 1.085 billion, down 45% YoY

Net income – CAD 0.997 billion, down 38% YoY

Adjusted EBITDA – CAD 1.193 billion, down 42% YoY

Adjusted EBITDA per net ton – CAD 454, down 41% YoY

-------------------------------------

Algoma Steel Q3 Performance

Shipment - 458,341 net ton, down 17% YoY

Revenue – CAD 567 million, down 47% YoY

Net Loss - CAD minus 70 million, up 157% YoY

Adjusted EBITDA – CAD minus 35.9 million, down 108% YoY

Hamilton 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.”

Outokumpu & Aperam Report Shrinkage in Stainless Steel Production

Related Stories