Canada based steelmaker Algoma Steel is continuing its effort to have an Ontario court void its iron ore pellet supply contract with US Steel. A decision is expected on October 26 on US Steel's motion to pause the Canadian proceeding, according to local media reports.
Algoma has long purchased iron ore pellets from US Steel, with the current agreement signed in May of 2020 that was expected to run through 2027. However, on September 29, 2025, Algoma informed US Steel it would be cancelling its pellet contract with the company and filed the lawsuit in Ontario Superior Court to declare that the two companies are no longer bound by the terms of the contract.
Algoma argued that their plans to slowly phase out blast furnaces was fast tracked due to US tariffs. They argued that US Steel knew the iron ore was to make products for the US market, and that market was stifled by the tariffs. US Steel asked the Ontario court not to rule on the case, citing that the contract was signed under Pennsylvania law, and that this was out of their jurisdiction.
US Steel filed a lawsuit of its own in Pittsburgh, Pennsylvania, claiming breach of contract to recover more than $22 million. That case is moving first to arbitration.
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