Essar Steel Algoma sees pickup ahead

Nov 14, 2013 | 04:25 PM | Catherine Ngai

Tags  Essar Steel Algoma, hot-rolled steel, plate, flat-rolled steel, quarterly earnings, Catherine Ngai

NEW YORK — Essar Steel Algoma Inc.’s steeper fall into the red in its fiscal second quarter was partly due to uncertain market conditions and its product mix, but the company said that strengthening momentum in the steel market coupled with a more competitive raw material contract will allow it to achieve better long-term sustainability.

The Sault Ste. Marie, Ontario-based flat-rolled producer sustained substantial losses in recent years and had negative working capital in its fiscal second quarter. While the losses were due to the company’s "adverse contract" with its main supplier of iron ore pellets, a contract amended in June will move the company’s raw materials cost more in line with the market price up to 2024. ....

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