MMi Daily Iron Ore Report (May 12)

[SMM Steel] Canada’s Algoma Steel reported a Q1 2026 net loss of C$159.4 million, widening from a C$24.5 million loss a year earlier, while revenue fell to C$296.9 million from C$517.1 million. Shipments dropped 52.4% YoY to 223,681 tons as the company transitioned from blast furnace production to EAF steelmaking and faced US Section 232 tariffs. Algoma expects annual raw steel capacity of 3.7 million tons after full EAF ramp-up, with carbon emissions projected to fall about 70%.

[SMM Steel] Nippon Steel reported FY2025-26 net profit of JPY44.75 billion, down sharply from JPY382.97 billion a year earlier, while sales rose 15.7% YoY to JPY10.06 trillion. Operating profit fell 55.7% YoY to JPY242.9 billion. Crude steel output increased 27.5% YoY to 50.48 million mt, while shipments declined 1.5% YoY to 31.16 million mt. The company warned that weak global steel demand, rising low-priced Chinese exports, trade protectionism, and Middle East geopolitical risks could continue pressuring earnings.

[SMM Steel] The US Department of Commerce released preliminary results of its countervailing duty (CVD) review on South Korean cut-to-length (CTL) carbon-quality steel plate for 2024. Preliminary subsidy rates were set at 1.89% for Dongkuk Steel and 1.39% for Hyundai Steel. Reviews for Daeik Eng and MAIKO International were partially rescinded after withdrawal requests.