Earnings PotentialAlgoma ships nearly 60% of its sheet to the U.S., and the doubling of import tariffs to 50% has a significant impact on its earnings potential, especially with the Canadian market currently oversupplied.
Market Cap And UncertaintyAlthough Algoma's market cap is below replacement value, the upside potential is currently limited due to tariff-related uncertainty and with EAF still in early stages of ramp-up.
Tariff ImpactThe announcement that Section 232 steel tariffs will double to 50% has resulted in further deterioration of the near-term outlook for Algoma given its material exposure to the U.S. market.