Algoma Steel Reports $333 Million Loss in Fourth Quarter
Algoma Steel Group Inc. reported a significant net loss of $365 million for the fourth quarter, a stark contrast to the $66.5 million loss from the same quarter last year. The company faced a total annual net loss of $985 million, worsening from a $139 million loss in 2024. This downturn is attributed to U.S. tariffs and reduced shipments.
Algoma Steel’s Transition to Electric Arc Furnace
Despite the financial setbacks, Algoma’s shift to Electric Arc Furnace (EAF) technology has shown promising results. CEO Rajat Marwah highlighted the early success of their EAF operations, stating that the facility is now running 24 hours a day. The furnace and associated systems are performing as expected, with product quality meeting industry standards.
Key Highlights from the EAF Conversion
- The EAF project achieved first arc and steel production in early July.
- Ramp-up activities are progressing as anticipated, contributing to overall operational improvement.
- Quality metrics across plate and hot-rolled coil grades have been successfully met.
During the fourth quarter of 2025, Algoma transitioned its EAF operations to a full 24-hour schedule. This marked a notable step from previous limited operations. Alongside this, the company decided to cease its blast furnace and coke oven operations ahead of the original 2027 timeline. Production from these methods stopped shortly after December 31, 2025.
Future Production and Environmental Impact
As a result of the transition, all liquid steel produced is now sourced from the EAF facility. Algoma plans to concentrate on manufacturing discrete plate products while scaling back on coil production as EAF capacity increases.
Once the EAF transformation is complete, Algoma expects its facility to achieve an annual raw steel production capacity of about 3.7 million tons. This upgrade is anticipated to reduce carbon emissions by around 70% when compared to pre-EAF levels.
Overall, while Algoma Steel faces current losses, its strategic shift to sustainable steel production through EAF technology could pave the way for long-term resilience and reduced environmental impact.
