Stelco is warning that it won't meet its targets for production, revenues or earnings because the steel market has weakened considerably in the past few months.
"As the third quarter was ending, we realized the market was softening much more than expected," Stelco CEO Rodney Mott said during a conference call with analysts Friday.
Mott said demand for its products was down more than expected as the Big Three automakers announced big production cuts. Inventories of steel are also high.
Stelco said, like most other steelmakers, it is already reducing its production levels to match the lower demand. It will also extend previously planned outages at its Hamilton blast furnace and Lake Erie hot strip mill.
Stelco shut down production in Hamilton last week — the first such shutdown in 16 years.