The holidays, the pandemic and supply chain issues resulted in Algoma Steel shipping less steel than anticipated in its third quarter.
Approximately 550,000 tons in shipments went out the door of the Sault Ste. Marie plate and sheet steel manufacturer, lower than their planned target of 590,000 to 610,000 tons.
But it's no big deal to Algoma CEO Michael McQuade who was satisfied with the steelmaker's performance during the quarter. He said the company will catch up over the next few months in moving steel out of the yard.
"Actual shipments were impacted by various issues including increased holiday shutdowns by customers, logistical supply chain constraints, and COVID-related challenges," said McQuade in a Jan. 10 news release.
"As a result, our steel inventory has increased, and we expect to ship these deferred tons over the next two fiscal quarters. Algoma’s high percentage of contract business offers stability during periods of volatility and this, combined with the strong demand and improving pricing we are seeing for our plate products, has positioned us well to continue delivering strong results to our shareholders," he added.
Algoma transitioned into new ownership last year and returned to the market as a publicly traded company last fall.
The company has also started construction to install two $700-million electric arc furnaces currently being designed by Danieli, the Italian company that delivered its Direct Strip Product Complex (DSPC) in the mid-1990s.
The two furnaces are expected to go into operation in 2024 with the capacity to produce 3.7 million tons of liquid steel.