Business · Companies · 5 hrs ago
Stelco reports strongest quarter since takeover while planning up to 500 layoffs
Stelco reported its strongest quarter since Cleveland-Cliffs bought it two years ago, even as it plans up to 500 layoffs at its Ontario operations.
Stelco is a Canadian steelmaker owned by US-based Cleveland-Cliffs.
Chief executive Lourenco Goncalves said improved demand for hot-rolled steel helped Stelco contribute positively to its owner’s third-quarter results.
He said Canada’s galvanized steel market is oversupplied, with domestic production and imports exceeding what the market can absorb.
Goncalves said tighter limits on galvanized steel imports could bring laid-off workers back immediately by giving Stelco more customers for its products.
The company will focus on hot-rolled steel, which Goncalves said has a market, while maintaining total production and preserving about 2,000 Canadian jobs.
Stelco’s next steps on layoffs depend in part on whether the Canadian government restricts imports; the company said financial support alone would not solve its lack of a market for galvanized steel.
Stelco reported its strongest quarterly results since Cleveland-Cliffs acquired the steelmaker two years ago.
Chief executive Lourenco Goncalves said Stelco was a positive contributor to Cleveland-Cliffs’ third-quarter results.
The company is moving ahead with up to 500 layoffs at its Ontario operations.
Goncalves said tighter Canadian import restrictions on galvanized steel could allow the temporarily laid-off workers to return.
Stelco plans to focus on hot-rolled products while maintaining total production tonnage.
- Who
- Stelco, owned by Cleveland-Cliffs, and its chief executive Lourenco Goncalves.
- What
- Stelco reported its strongest quarter since its takeover while proceeding with up to 500 layoffs. Goncalves called for tighter restrictions on galvanized steel imports.
- When
- The results covered the quarter ended Sept. 30, 2026. The report was published Oct. 19, 2026.
- Where
- Stelco’s operations in Ontario, Canada.
- Why
- Goncalves said Canada’s galvanized steel market is oversupplied, in part because of imports, and does not offer enough market for Stelco’s products.
This story does not have two clearly opposing sides.
Cleveland-Cliffs acquired Stelco.
Stelco became a positive contributor to Cleveland-Cliffs’ third-quarter results.
The Canadian Press report on Stelco’s results and layoffs was first published.
- Planned layoffs
- Up to 500 workers at Stelco’s Ontario operations
- Quarter
- Ended Sept. 30, 2026
- Owner
- Cleveland-Cliffs Inc.
- Steel market
- Goncalves described Canada’s galvanized steel market as oversupplied
- Canadian jobs
- About 2,000 jobs to be preserved
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What people are saying
What Stelco and Stelco workers really need is a market to sell galvanized steel, and government money cannot buy a market for galvanized steel.
If the Canadian government uses the power they already have ... to block or severely reduce imports of galvanized steel into the Canadian market, Stelco can immediately bring back all the temporarily laid-off workers because that would immediately give us a market to sell and the ability to produce galvanized steel