Stelco posts strongest quarter since Cleveland-Cliffs takeover amid layoffs

The chief executive of Cleveland-Cliffs Inc. says Stelco has posted its strongest quarterly results since the Ohio-based company acquired the steelmaker two years ago, even as it moves ahead with up to 500 layoffs at its Ontario operations.

Lourenco Goncalves says Stelco became a "positive contributor" to Cleveland-Cliffs' third-quarter results for the period ended Sept.

30 amid a sharp improvement in Canada's hot-rolled steel market.

However, he says more needs to be done by the Canadian government to correct "a clearly oversupplied market for galvanized steel in Canada." Goncalves says without a clear plan from Ottawa aimed at improving market conditions for galvanized steel, the company made the "difficult but necessary" decision to indefinitely idle its galvanizing lines at Stelco.

He says laid off workers will be called back as soon as the current situation improves.

In the meantime, Goncalves says Stelco will concentrate on hot-rolled products "that actually have a market." He says total production tonnage at Stelco will be maintained, its contribution to Cleveland-Cliffs' earnings will further increase, and about 2,000 Canadian jobs will be preserved.

Stelco produces hot-rolled steel at its Lake Erie Works in Nanticoke, Ont., for products such as construction materials and pipelines, while its Hamilton Works processes steel into cold-rolled and coated products, including galvanized steel, used for automotive, agriculture and infrastructure applications.

This report by The Canadian Press was first published Oct.

19, 2026.

By Brett Bundale | Copyright 2026, The Canadian Press.

All rights reserved.