US Steel Corporation has filed a lawsuit against Canadian steelmaker Algoma Steel Group Inc. in the US District Court for the Western District of Pennsylvania, alleging breach of a multi-year iron ore pellet supply agreement and seeking to recover over $22 million in unpaid shipments, according to media reports.
According to court filings, Algoma Steel failed to pay for scheduled pellet deliveries in September 2025 and subsequently issued a notice on October 1 terminating all future deliveries under the agreement.
US Steel claims that Algoma’s termination constitutes a material breach of the legally binding contract, which was intended to ensure long-term supply stability for Algoma’s blast furnace operations.
Contract details and tariff context
The pellet supply agreement, signed in May 2020, covered shipments through January 2027, totaling 1 million metric tons of pellets sourced from US Steel’s Minnesota-based mining operations.
Algoma is reported to have justified its withdrawal by citing the 50 percent tariff on Canadian steel imposed by the Trump administration, which it said made the contract economically untenable.
US Steel, however, has requested the court to enforce the agreement while seeking compensation for lost profits estimated at nearly $100 million.