Stelco has posted its strongest quarterly results since Cleveland-Cliffs Inc. acquired the steelmaker two years ago, even as it moves ahead with up to 500 layoffs at its Ontario operations, chief executive Lourenco Goncalves said.
Stelco became a “positive contributor” to U.S.-based Cleveland-Cliffs’ third-quarter results for the period ended Sept. 30 amid a sharp improvement in Canada’s hot-rolled steel market, he said in an earnings release.
However, Goncalves said more needs to be done by the Canadian government to correct “a clearly oversupplied market for galvanized steel in Canada.”
During an earnings call with analysts, he said the domestic market in Canada is not big enough to accommodate two Canadian producers of galvanized steel, Stelco and ArcelorMittal Dofasco, on top of what he called an “avalanche of imports.”
He said laid off workers could be brought back immediately if Ottawa brought in tighter import restrictions on 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,” Goncalves said.
He added that the Canadian government offered the steelmaker financial support, “but that’s not what Stelco needs.”
“What Stelco and Stelco workers really need is a market to sell galvanized steel, and government money cannot buy a market for galvanized steel.”
In the meantime, Goncalves said Stelco will concentrate on hot-rolled products “that actually have a market.”
He said 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.
