U.S. Steel Reaches Sales Agreement with Algoma Steel

SEATTLE (Scrap Monster): Pittsburgh-based United States Steel Corporation (U.S. Steel) has signed a long-term iron ore sales agreement with Ontario-headquartered Algoma Steel Inc. The four-year deal, which runs from 2021 to 2024, is expected to ensure incremental volume and a new customer for U.S. Steel’s Minnesota mines.

David B. Burritt, President and Chief Executive Officer, U. S. Steel noted that the supply agreement reiterates the value of its iron ore operations. The company is pleased to partner with Algoma to ensure substantial supply of iron ore pellets required to run its businesses. U.S. Steel is committed to satisfying Algoma’s important long-term needs, Burritt added.

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The new agreement is part of company’s plans to gain market share in strategic end markets, while continuing to offer quality services to its existing customers. It is in line with the company’s “best of both” strategy announced in October 2019. This is the second major iron ore purchase agreement announced by U.S. Steel during the current year. Earlier in end-April, the company had announced an agreement which included another party’s option to acquire a 25 percent interest in the Company’s Minntac iron ore operation.

U.S. Steel noted that completion of Alabama EAF, continued investments at Mon Valley Works and upgrades to Gary Works hot strip mill will reposition its footprint as one of the best steel producers in the country.