According to court documents, Algoma Steel did not pay for the planned shipments of pellets in September 2025 and subsequently issued a notice on October 1 to terminate all future shipments under the agreement.
US Steel claims that Algoma's termination constitutes a material violation of a legally binding contract that was designed to ensure long-term supply stability for Algoma blast furnaces.
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 received from US Steel's mining operations in Minnesota.
Algoma reportedly 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, appealed to the court to enforce the agreement, demanding compensation for lost profits estimated at almost $100 million.
