Canadian Steel Companies Announce Price Increases to Boost Profitability

Canadian Steel Price Hikes to Offset Tariff Pressures

To stabilize profitability, Canadian steel giants Stelco and ArcelorMittal recently announced a C$100 per short ton price increase, effective November 5-6. This decision comes after months of concerns over the Canadian steel industry’s struggles with tariff restrictions that limit access to the crucial US market.

This price hike highlights a growing issue in the Canadian steel industry, where prices are significantly lower than in the US. According to Algoma, Canadian steel prices were 40% lower than US prices in Q3 of 2025. Tariff restrictions have made it challenging for Canadian mills to maintain profitability.

US Tariff Impact on Canadian Steel Market

US tariffs on steel products have heavily affected Canadian producers, limiting their ability to compete in the US market. During the week of October 27-31, US flat steel prices ranged from $848.50 to $1,025.50 per short ton, depending on the steel grade. The price difference has made it harder for Canadian steelmakers to compete, especially as US demand remains steady.

Despite this, Canadian mills are focusing on boosting domestic sales to offset lost revenue from the US market. Domestic buyers have reported quieter market conditions during the summer and autumn months, with many companies focused on maintaining operations rather than expanding.

Challenges in the Canadian Steel Industry

The Canadian steel industry continues to face challenges, particularly with the ongoing US tariff restrictions. The price increases are seen as a necessary move to help Canadian steelmakers stay financially viable and ensure the survival of the domestic industry.

Companies like Algoma, Stelco, and ArcelorMittal face growing pressure to compete with US prices while managing rising operational costs and tariff challenges. The price hikes reflect both the industry’s vulnerability and its ability to adapt to a difficult market environment.

SuperMetalPrice Commentary:

The recent price increases announced by Stelco and ArcelorMittal underscore a growing trend of price corrections in markets facing tariff constraints. For Canadian steelmakers, the price hikes are an attempt to bolster profitability amid an increasingly challenging landscape. As global tariffs continue to impact steel trade, Canadian producers must find new ways to remain competitive, especially with the increasing gap between domestic and US steel prices. These price adjustments could signal further shifts in pricing strategies across the steel industry, as companies navigate the evolving trade and tariff environment.