Stelco Reports Significant Drop in Steel Exports to the U.S. Amid Market Pressures

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Stelco Inc. reveals a dramatic decline in Canadian steel exports to the U.S., citing pressure from foreign imports and reduced domestic demand, leading to planned layoffs at its facilities.

OTTAWA — Stelco Inc. has reported a staggering 58 percent decrease in Canadian exports of cold-rolled and coated steel to the United States, compared to levels prior to the trade war. In a detailed seven-page letter addressed to Canada’s industry minister, the president of Stelco, Paul Simon, highlighted that exports of these steel products dropped by 226,000 tonnes during the second quarter of 2026, when juxtaposed with the quarterly average from 2024. This decline is occurring concurrently with a significant influx of imports, which now comprise 45 percent of the market share for these products, despite the Canadian government's initiatives aimed at shielding the domestic steel industry from foreign competition.
Simon pointed out that the combination of reduced U.S. exports, a downturn in domestic demand, and persistent foreign steel imports has led to a contraction in the market for products manufactured at Stelco’s Hamilton Works, resulting in a decrease of over one million tonnes annually. This figure is approximately double the historical annual production capacity of cold-rolled and coated steel at the facility.
The letter, dated October 9, was a response to a request from Industry Minister Mélanie Joly for clarification on how Stelco intends to fulfill the employment commitments made by its U.S.-based owner Cleveland-Cliffs at the time of its acquisition of the company in 2024. In light of recent challenges, Stelco disclosed plans to lay off as many as 500 workers across its Hamilton Works and Lake Erie Works facilities located in Ontario.
Despite the warning from Joly regarding potential legal ramifications, Simon, who also serves as Stelco’s general counsel, affirmed that the company is moving ahead with plans to idle its Hamilton finishing operations. He contended that the layoffs would not breach the binding employment commitments, citing the significant shifts in market conditions caused by U.S. tariffs and ongoing foreign steel imports.
On October 10, Joly issued a statement via X, emphasizing that Stelco's legally binding employment commitments remain intact, regardless of any alterations in business strategies or market dynamics. She further indicated that the government is exploring all options while legal experts assess the company’s explanation regarding the layoffs.

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