In announcing its third-quarter earnings, the Canadian steelmaker said U.S. trade actions, such as the Section 232 tariffs, have greatly restricted Canadian access to the U.S. steel market, creating an oversupply of coils and driving down prices. As a result, Algoma said it will shift its production focus to discrete plate — of which it is Canada’s sole producer — while stepping up the decommissioning of its blast furnace and coke ovens.

“This shift is expected to substantially reduce tariff exposure, lower operating costs and enhance overall cash efficiency, extending Algoma’s liquidity runway and positioning the company to improve financial performance as market conditions stabilize,” Algoma said in a statement.

One of Algoma’s two new EAFs is operational. Although the furnace is still being ramped up, Algoma said its performance has been in line with expectations.

“The furnace and associated meltshop assets have demonstrated stable and reliable performance, achieving quality metrics across a broad range of plate and hot-rolled coil product grades. The Q-One power system and other critical process components continue to perform as designed, supporting consistent metallurgical quality and process control,” it said.

Come mid-November, Algoma will begin operating the furnace five days per week, up from the two-day-per-week schedule it has been on, to align with market conditions and to facilitate completion of final installation and integration activities across the meltshop.

Construction is progressing on the second EAF, and commissioning is expected in early 2026. Once the process conversion is complete, Algoma will have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity. The project also is expected to lower annual carbon emissions by approximately 70%.

“While we cannot control macro challenges or market access issues, we remain focused on what we can control, the successful execution of our transformation strategy. We are confident that the flexibility and structural cost advantages we are building through our investment in green steelmaking technology will serve us well across market cycles and create lasting value for all stakeholders,” said Algoma Steel chief executive officer Michael Garcia.