Canadian steelmaker Stelco plans to indefinitely idle its cold-rolled and coated operations at Hamilton Works from around October 9, affecting up to 500 employees as trade disruptions and weaker demand weigh on the market.
The company said US Section 232 tariffs have significantly reduced its market for cold-rolled and galvanized steel products. By the second quarter of 2026, demand in markets traditionally served by Stelco had fallen nearly 25pct compared with the quarterly average in 2024, including a 10pct decline in Canada.
Stelco described the decision as necessary to address what it called an unsustainable market for cold-rolled and coated products. The company also cited continued import penetration, which it said remained high despite measures introduced by the Canadian government to reduce overall imports.
The planned idling will not affect hot-rolled steel supply, according to the company. Cleveland-Cliffs, which acquired Stelco in November 2024, said production would be consolidated at Lake Erie Works, with job opportunities there to be offered to affected Hamilton employees. Union representatives estimate that around 350 steelworkers could be laid off.
Stelco said it would continue monitoring trade measures and domestic market conditions, while working with the government to improve market access and support the Canadian steel industry.