Steel Mills
Winter Weather Slows Q3 Production for Essar Steel Algoma
Written by Sandy Williams
February 13, 2014
Essar Steel Algoma posted a net loss of 38.6 million for the third quarter FY 2014, ending December 31, 2013, compared to a net loss of $25.1 million for third quarter FY 2013.
Severe winter weather slowed incoming raw material shipments affecting production for the quarter. Steel shipments were 590,837 tons, down from 642,000 tons the prior quarter and down 9.9 percent from the same period a year ago. Sales of $436 million dropped 6 percent from Q2 due to lower production and margins.
The average selling price per ton was higher in the Q3, $666/ton versus $638/ton the prior quarter.
The outlook for 2014 is positive with an Algoma trade action against imported plate helping to recover pricing by $70/ton. Total shipments for FY 2014 are expected to be in the range of 2.4 to 2.5 million tons.
“We are encouraged by improving macro economic indicators for 2014 as demonstrated in recent increases to hot rolled coil pricing and a significant improvement in the pension solvency position. In the months ahead we expect reduced costs as benefits from our new iron ore contract materialize,” said CEO Kalyan Ghosh. When combined with the recent strategic additions to our management team and plans to improve productivity by a further 10-15% we are confident in our ability to realize a further $50 per ton cost reduction over the coming quarters.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.
Cleveland-Cliffs CEO seeks ‘American solution’ for U.S. Steel
He said a new entity would operate under the U.S. Steel name and would retain its Pittsburgh headquarters.