Canada
January 6, 2026
Judge sends U.S. Steel v. Algoma pellet contract spat to arbitration
Written by Laura Miller
A federal judge in Pittsburgh has ordered U.S. Steel and Algoma Steel to resolve their iron ore pellet contract dispute through arbitration.
The decision comes after USS sued the Canadian steelmaker for refusing a shipment of iron ore pellets from U.S. Steel’s Minnesota operations in September.
Algoma, based in Sault Ste. Marie, Ontario, sought a declaration in a Canadian court that the contract was no longer enforceable. Since it filed for ‘equitable relief’ in Canada, the company argued it shouldn’t have to arbitrate.
But in an opinion issued on Dec. 12, US District Judge Marilyn Horan said the companies’ 2020 pellet-supply agreement clearly requires arbitration. Therefore, the arbitrators – not the court – must decide Algoma’s claim that the contract is no longer valid.
The judge also rejected Algoma’s attempt to dismiss the case for “lack of personal jurisdiction.” She found the Canadian steelmaker had substantial ties to Pennsylvania, including in-person meetings in Pittsburgh, contract negotiations with U.S. Steel’s Pittsburgh-based team, regular communications with USS employees in Pennsylvania, and payments routed through a Pittsburgh bank.
The judge also noted the contract itself mandates arbitration in Pittsburgh, where U.S. Steel is headquartered, under Pennsylvania law.
U.S. Steel said it is pleased with the Court’s decision. “A contract is a contract and we expect Algoma to live up to its commitments, as have we,” a spokesperson for the company told SMU in an email.
With arbitration now ordered, the court stayed Algoma’s remaining claims pending the outcome of the proceedings.
Algoma Steel did not respond to a request for comment.
