Stelco posts strongest quarter since 2024 buyout as Ontario layoffs loom

Cleveland-Cliffs reported that Stelco’s third-quarter performance was the strongest since the U.S. firm acquired it in 2024, driven by a rebound in the Canadian hot-rolled steel market. CEO Lourenco Goncalves praised the results but said further action by the Canadian government is needed to curb an oversupplied galvanized-steel market. At the same time, the company issued layoff notices for 300-350 workers at its Hamilton and Nanticoke facilities, with United Steelworkers Local 1005 president Ron Wells expecting 333 cuts in Hamilton and Local 8782 president John McElroy foreseeing up to 50 in Nanticoke.

Goncalves attributed the cuts to U.S. tariffs and market conditions, while promising to recall workers if import restrictions are imposed. Federal Industry Minister Mélanie Joly reminded Cleveland-Cliffs of its commitment to maintain employment levels and said Ottawa is reviewing legal options under the Investment Canada Act. Union representatives criticize the mixed messaging, noting the contradiction between reported profitability and plant shutdowns.