Participants in the Canadian steel market told MEPs that the government's plans to increase spending on infrastructure and defense should support Algoma Steel's plan to open a new factory for the production of construction beams, which will increase supplies to the domestic market.
The Canadian authorities recently announced a number of measures to protect their domestic steel industry through the introduction of preferential tariff quotas and duties exceeding the quota by 50%. In September, Canadian Prime Minister Mark Carney also began promoting the policy."Buy Canadian steel," prescribing the use of domestic steel in major projects in order to support domestic steel producers.
As stated in a December study for the MEPS International Steel Review[url= / / / /gb/en/products/international-steel-review], participants in the Canadian steel market believe that this will support Algoma's long-standing plan to open a girder manufacturing plant.
Chris Jackson, a member of the European Parliament and steel market analyst, said: "Algoma Steel is undertaking a key restructuring of its steel businesses after President Trump's trade policy revealed the company's over-reliance on the neighboring rolled and rolled steel market in the United States. The construction of the beam factory provides a unique opportunity to increase sales in the local market, given the current lack of supplies in the domestic market."
Since December 26, Canada's quotas for duty-free steel imports for countries that do not have a free trade agreement (FTA) with this country have been reduced from 50% to 20% of the import level in 2024. For the partners under the free trade agreement, the duty-free import quota has decreased from 100% to 75% of the 2024 level. This should reduce competition abroad for domestic steel producers, who are having a hard time adjusting to the loss of export opportunities as a result of the United States imposing 50 percent import duties under Section 232.
Algoma Steel is one of these steel producers. Last month, it reported a net loss of CAD485.1 million for the three quarters of 2025 and announced more than 1,000 jobs.
However, in November he agreed to a CAD500 million government financing agreement, including CAD400m from the Canadian Emergency Business Financing Corporation and CAD100m from the Province of Ontario.
The Ontario-based steelmaker later announced its plans to open a beam and advanced plate plant, which is scheduled to operate by the end of 2026. The project provides for the re-employment of 500 workers
The interest of American factories in sales in Canada has decreased.
Currently, Canada does not have domestic suppliers of construction beams. Historically, factories
