Algoma Steel has signed a new four-year iron ore pellet purchase agreement with US Steel.
The new contract replaces the ones that expire at the end of 2020 and provides Algoma with an assured supply source and quality through the end of the 2024 shipping season.
Pointing to improved terms and pricing for the company, Michael McQuade chief executive officer, Algoma, commented on Thursday that the new deal provides the firm with a competitive iron ore supply to sustain its business through the steel market cycle.
McQuade added that the complete lift of steel tariffs imposed under US Section 232 against Canada returned both countries to a fair playing field and would benefit Algoma’s customers across North America.
Ontario-based Algoma Steel is a fully integrated steel producer with crude steel production capacity of approximately 2.8mn nt. The company produces a wide variety of hot and cold rolled steel sheet and plate products for automotive, construction, energy, defense, and manufacturing industries.
US Steel operates two major taconite mining and pelletizing operations in northeastern Minnesota’s Iron Range under the operating name Minnesota Ore Operations. It is actively downsizing operations at the Minntac and Keetac mines to align with weaker steel production at the company and customer mills.