Algoma expects 65% drop in Q3 steel shipments after turbine outage (ASTL:NASDAQ)

Algoma Steel Group said it temporarily halted electric arc furnace production after an unplanned electrical outage at its Lake Superior Power plant, triggered by an abnormal condition on one turbine unit. Teams are assessing repairs and accelerating scheduled maintenance. Finishing and shipping continue, but future shipment volumes may be affected. Algoma is coordinating with IESO and GE Vernova to restart, targeting up to 10 days, with outage possibly lasting up to 21 days. Shares fell to about

Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) said an unplanned outage occurred at its Lake Superior Power generating facility after a turbine unit detected an abnormal condition and shut down automatically. Other units were unaffected. Algoma suspended electric arc furnace production, while finishing and shipping continued. It expects no major near-term delivery impact but may see reduced future shipment volumes.

Algoma Steel Group Inc. (NASDAQ: ASTL, TSX: ASTL) said an unplanned outage at its Lake Superior Power generating facility took one turbine unit offline and led it to temporarily suspend electric arc furnace (EAF) production. The company expects the EAF outage to last up to 21 days, with a possible restart in about 10 days if power alternatives are approved.

Algoma Steel Group (NASDAQ: ASTL) said one turbine at its Lake Superior Power generating facility went offline after an abnormal condition, while other units kept running. Because LSP supplies electricity to its electric arc furnace, EAF production was suspended. Algoma expects the outage to last up to 21 days, with a possible restart in about 10 days if an alternative power plan is approved, and it is working with GE Vernova on a spare turbine.

Algoma Steel Group Inc. reported a Q2 net loss of $96M, versus a $110.6M loss a year earlier. Net loss per diluted share was 88 cents, versus $1.02. Revenue fell to $267.5M from $589.7M. Shipments dropped to 181,473 tons from 472,056. Direct tariff costs were $18.7M, down from $64.1M.

The chief executive of Algoma Steel ASTL-T says the company is ramping up its pivot to the Canadian market as headwinds from U.S. tariffs constrain its shipments south of the border. Rajat Marwah says the steelmaker incurred US$18.7-million in direct tariff costs in the second quarter, down from US$64.1-million a year ago, as it reduced its exports to the U.S. “The 50 per cent U.S.