Cleveland-Cliffs says Stelco’s third quarter this year was its “strongest” since it was acquired by the U.S. company in 2024.

At the same time, hundreds working for the steelmaker in Ontario are set to lose their jobs in Hamilton and Nanticoke. Layoff notices started rolling out earlier this month and are continuing.

“Third quarter was Stelco’s strongest … since we acquired the company two years ago. The Canadian hot-rolled market has improved substantially,” Cleveland-Cliffs CEO Lourenco Goncalves said in a statement Monday.

“However, more needs to be done by the Canadian government to correct a clearly oversupplied market for galvanized steel in Canada.”

Stelco Holdings Inc. said on Sept. 28 it planned to idle part of its Hamilton plant in order to “ensure the survival” of the company as U.S. tariffs has squeezed its sales.

Ron Wells, president of United Steelworkers Local 1005, told CBC that 333 layoffs were expected in Hamilton. USW Local 8782 president John McElroy said up to 50 layoffs are expected at the Lake Erie Works in Nanticoke.

During an earnings call Monday, Goncalves said all of Cleveland-Cliffs’s major profit drivers increased.

He praised U.S. President Donald Trump’s trade policies, saying they are “helping create the conditions needed for companies like ours to continue investing in [local] communities and expanding domestic production,” despite Stelco citing tariffs as a key reason for economic struggles.

Steel sales under ‘best price environment in 3 years’

In June, Trump signed an executive order applying up to 50 per cent tariffs to certain steel and aluminum imports from Canada.

“We are currently selling steel under the best price environment in three years,” said Goncalves.

“These are the prices we need to run a thriving business that grows employment, pays its workers well, reinvests in people and equipment, and protects our critical supply chains and national defence.”

Goncalves said the success of the hot-rolled steel business was a direct consequence of the Canadian government’s system tariff-rate quota, which limits the amount of product that can be imported.

The federal government has said Cleveland-Cliffs’s purchase of Stelco included promises to employ “at least the same number of unionized employees and the vast majority of non-unionized employees” as there were in 2024 and through 2029.

Federal Industry Minister Mélanie Joly said “a business decision or even a change in market conditions cannot be used to not follow their commitment.”

Goncalves reiterated Stelco’s position that the layoffs are a temporary measure until Canada and the U.S. reach a trade agreement.

Stelco steel works in Hamilton are pictured on Oct. 9. The U.S.-based steelmaker announced 300 to 350 layoffs amid the Canada-U.S. trade war. (Evan Mitsui/CBC)

He said the Canadian market is “exposed” and that he has been asking the government to block or “severely reduce” the importing of galvanized steel into the market.

If that happens, he said, “Stelco can immediately bring back all the temporarily laid-off workers.”

He also said he’s willing to sell Stelco and is prepared to fight the Canadian government in court to preserve the plan to lay off workers.

Earlier this month, Joly said Ottawa is considering a range of legal options against Cleveland- Cliffs.

The minister said the government is examining its options under Section 40 of the Investment Canada Act. They could include financial penalties, a court order forcing the company to comply with its commitments or an order requiring it to sell its Canadian assets.

CEO’s messaging ‘confusing,’ union rep says

Wells told CBC Hamilton on Monday that workers are feeling “underappreciated” as layoffs proceed.

“They’re dedicated, loyal employees” he said. “They work weekends, they work holidays, they missed their kids’ hockey games, graduations, and that loyalty isn’t being repaid.”

Wells also called Goncalves’s messaging “confusing.”

“He said Stelco’s Q3 results were good, they’re profitable. If they’re profitable, why’d he shut down our [cold-rolled] and coated [steel] departments?” Wells said.

He also noted that Cleveland-Cliffs is advocating for a reduction in foreign imports, adding that “the U.S. [and] Cleveland-Cliffs might be part of that problem” as a large steel importer to Canada.

“We still hope Minister Joly follows through with her commitment to enforce the Investment Canada Act,” Wells said.