The company says the market is too weak to justify getting the local facility back up and running.
Meantime, U.S. Steel sold its Serbian operations to the government there for one dollar after losing over $200 million.
Overall, the company lost $68 million last year but calls that a ''significant improvement'' over previous periods.
The company noted the $20 million cost of ratifying its contract with steelworkers Local 1005 and restarting some operations in Hamilton following the 11 month lockout.