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Layoffs at Essar Steel Algoma. Low plate prices blamed

In highly unusual market conditions, plate steel prices have dropped below those of hot-rolled coil. Essar Steel Algoma advised affected employees just before the Labour Day long weekend that their services are no longer required at this time.
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File photo: Essar Steel Algoma. Kenneth Armstrong/SooToday

Between 70 and 85 employees of Essar Steel Algoma received layoff notices from the mill just prior to the Labour Day long weekend.

"Current market conditions have prompted a reduction in production levels and the company has had to adjust staffing levels accordingly," Brenda Stenta, the company's manager of corporate communications, tells SooToday.

"The plate market has experienced a significant drop driven by low demand in consuming markets, including those on the energy side along with rail-car and agricultural markets." 

"This, combined with a continued presence and threat of low-priced and dumped imports has pushed plate prices below hot-rolled coil, a highly unusual turn of events."

"We regret the impact this will have on our employees, their families and the community. In the event there is a recovery in market conditions and staffing needs increase, consideration will be given to those individuals impacted as a result of shortage of work."




David Helwig

About the Author: David Helwig

David Helwig's journalism career spans seven decades beginning in the 1960s. His work has been recognized with national and international awards.
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