Stelco cites foreign imports, 58% plunge in U.S. steel exports to defend layoffs


Stelco announced plans late last month to lay off up to 500 workers at its Hamilton Works and Lake Erie Works facilities in Ontario.

Stelco Inc. says Canadian exports of cold-rolled and coated steel to the United States have plunged 58 per cent compared with pre-trade-war levels, while continued foreign imports put pressure on domestic producers.

In a seven-page letter to Canada’s industry minister obtained by The Canadian Press, Stelco president Paul Simon says Canadian exports of those steel products to the United States fell by 226,000 tonnes in the second quarter of 2026 compared with the 2024 quarterly average.

At the same time, he says imports accounted for 45 per cent of market share for those products, despite Ottawa’s efforts to protect the industry by restricting steel imports.

Simon says a combination of declining exports to the United States, weaker domestic demand and continued foreign steel imports has shrunk the market for products made at Stelco’s Hamilton Works by more than one million tonnes annually — roughly twice the plant’s historical annual production of cold-rolled and coated steel.

The Oct. 9 letter came in response to Industry Minister Mélanie Joly’s demand that Stelco explain how it will honour job commitments made by its U.S.-based owner Cleveland-Cliffs when it acquired the company in 2024.

Stelco announced plans late last month to lay off up to 500 workers at its Hamilton Works and Lake Erie Works facilities in Ontario.

Simon, also Stelco’s general counsel, says the company is proceeding with plans to idle its Hamilton finishing operations despite Joly’s warning of possible legal action. He says the layoffs do not violate its binding employment commitments as U.S. tariffs and continued foreign steel imports have dramatically changed market conditions.

In a statement posted to X on Oct. 10, Joly says Stelco’s legally binding employment commitments remain in force despite changing business strategies or market conditions, adding that all options remain on the table as government lawyers review the company’s response.

This report by The Canadian Press was first published Oct. 13, 2026.



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