Cliffs ties potential Stelco recalls to domestic steel demand
Cleveland-Cliffs says up to 175 laid-off Stelco employees could return before Christmas if Canadian buyers increase purchases of locally made steel.
Cleveland-Cliffs says a potential return to work for laid-off Stelco employees now hinges on whether Canadian customers place enough orders for steel produced in Canada. Chief executive Lourenco Goncalves told The Globe and Mail that, if the company’s plan succeeds, he intends to recall all 175 affected workers before Christmas. The prospective recalls are conditional, rather than a confirmed staffing action or production restart. [1]
The company had said late in September that it would cut as many as 500 Canadian jobs, but Goncalves now puts the maximum number affected at 175. The difference matters for Hamilton and Nanticoke operations, where the layoffs have become part of a broader dispute between the U.S.-based owner and Ottawa over employment commitments made when Cliffs acquired Stelco in 2024. [1]
Goncalves has linked the company’s pressure on its Canadian galvanized-steel business to what he describes as an influx of low-priced overseas imports into Canada and to U.S. 50-per-cent tariffs that he says restrict Stelco’s ability to compete south of the border. He has previously said worker recalls could follow either a Canada-U.S. arrangement that eliminates or substantially lowers those tariffs, or stronger Canadian action against imported galvanized steel. The federal government has already imposed significant barriers on steel from countries suspected of dumping, according to the report. [1]
The recall statement also comes amid an escalating disagreement over Stelco’s ownership and Investment Canada Act undertakings. Industry Minister Mélanie Joly has said Cliffs could face enforcement action, including potential financial penalties or a forced sale, over alleged employment-related breaches. Cliffs maintains it is meeting its legally binding commitments and expects to report annual unionized and non-unionized employment above the required minimums. Goncalves said Stelco is not for sale at present and that he would not discuss buyers during the next calendar year. [1]
For Canadian steel customers, the immediate signal is that local procurement may influence the company’s near-term operating and staffing decisions. However, the report does not establish that sufficient orders have been secured, that 175 employees will be recalled, or that the underlying market and tariff pressures facing Stelco have eased. The announcement therefore indicates a conditional demand-and-employment response rather than evidence of a broader recovery in Canadian steel conditions. [1]
This is a limited but decision-relevant steel-sector business response: Cliffs has made a potential recall of up to 175 Stelco workers conditional on increased Canadian purchases of domestically produced steel. It signals the importance of local demand to near-term capacity and employment decisions, but does not confirm new orders, recalls, tariff relief, or a change in sector-wide disruption; consequently, it does not warrant a forecast rating change. [1]