Algoma Steel says shipments down 31% in Q4, driven by tariffs; net loss widens

Sault Ste. Marie-based Algoma Steel Ltd. said this week that it lost almost $1 billion in 2025, due to the effects of U.S. tariffs and a softening markets.

SAULT STE. MARIE — Algoma Steel Group Inc. saw its shipments fall by double digits in its latest quarter as it continued to grapple with high U.S. tariffs and challenges with oversupply in Canada.

“The extreme tariff environment on steel imports and derivative products from Canada remains the defining challenge for our industry,” chief executive Rajat Marwah told analysts on a conference call Thursday.

“The unprecedented 50 per cent tariff implemented in June fundamentally broke the cross-border business model that Canadian producers, including Algoma, had built over decades,” said Marwah, who took on the top role at Algoma in January. 

He said tariffs have significantly restricted access to the U.S. market for Canadian producers, and has led to an oversupply of steel coil in Canada — driving prices lower.

Marwah’s comments came as the Sault Ste. Marie-based steel producer reported a net loss of $364.7 million in its fourth quarter compared with a loss of $66.5 million during the same period a year earlier. 

Its direct tariff costs totalled $60.6 million during the quarter. 

Algoma reported its shipments during the quarter were 378,533 tons, down 31 per cent year-over-year from 548,802 tons.

“The decrease in shipments was largely attributable to the impact of U.S. tariffs ... which effectively closed that market to our products,” said chief financial officer Michael Moraca.

The company’s direct tariff costs added up to $225 million for 2025 overall. 

“2025 was the most challenging year in recent memory for Canadian steel producers,” Marwah said.

Algoma is continuing to reposition itself, Marwah said, moving away from its historic model as a cross-border commodity producer to becoming a Canadian supplier.

He said the pivot would focus on producing high-quality steel plates needed for infrastructure, manufacturing and defence in Canada.

As part of this transition, the company previously announced it’s laying off about 1,000 workers, which Marwah on Thursday said would happen toward the end of this month. Algoma had accelerated plans to shut down its blast furnace and coke oven operations as it shifts to more efficient electricity-based steel production.

“None of this came without real human cost,” Marwah said.

Despite the changes, Moraca warned that 2026’s first quarter still doesn’t look promising.

“Due to persistently weak market demand, we expect shipments this quarter to be sequentially lower than the fourth quarter,” he said.

Meanwhile, the Canadian Steel Producers Association on Thursday renewed its call for stable, predictable and tariff-free trade between the U.S. and Canada, as the beginning of tariffs targeting the Canadian steel industry mark the one-year mark.

“Rather than this damaging trade war between our two nations, we should deepen our work together,” said Catherine Cobden, president and CEO of the Canadian Steel Producers Association, in a statement.

The group also demanded the federal government resolve steel tariffs during the upcoming Canada-U.S.-Mexico trade agreement review. 

This report by The Canadian Press was first published March 12, 2026.