Cleveland-Cliffs Upbeat About 2026 After Steel Prices Rise

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

An improving market for steel is giving Cleveland-Cliffs a much-needed jolt, as the company prepares for a series of improvement projects at some of its key facilities.

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A Promising Start to 2026

Stronger steel prices and rising demand from the domestic automotive sector bolstered Cleveland-Cliffs Incorporated throughout the first quarter. One company executive called activity during the first three months of 2026 "a sustained improvement progression that will continue through the rest of the year." Industrial Info Resources is tracking more than $2.8 billion worth of active and proposed projects across the U.S. and Canada from Cleveland-Cliffs, more than $1.6 billion of which is attributed to steel-manufacturing projects.

Facilities in both the U.S. and Canada are undergoing major improvement projects. During the first quarter, Cleveland-Cliffs started work on the addition of four electrified-induction slab-reheat furnaces at its Butler Steel Works Plant in Lyndora, Pennsylvania. The company expects the project will add 25,000 tons per year of electrical-grade steel production to the 1 million-ton-per-year plant through the replacement of two older models.

According to Industrial Info Resources data, the project could wrap up as early as next summer, although numerous factors could push back the completion date. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Plant and Project databases can learn more--including key components, investment values and necessary equipment--from a plant profile and a detailed project report.

In Canada, Cleveland-Cliffs subsidiary Stelco Incorporated is at work on a series of equipment additions and upgrades at its Hilton Steel Works in Hamilton, Ontario. The project, which started in December, could wrap up toward the end of this year. Subscribers can learn more from a detailed project report.

In a quarterly earnings-related conference call Monday, Lourenco Goncalves, the chief executive officer of Cleveland-Cliffs, praised U.S. President Donald Trump's protective trade policies for the domestic steel industry, and speculated Canada would be forced to take similar action in the near future: "There's a robust domestic market in Canada for our Canadian subsidiary, Stelco to sell steel into, but the Canadian market is still oversupplied with steel from countries that are no longer able to dump their excess capacity into the United States. Because of that, they dump steel in Canada."

Cleveland-Cliffs also is putting the final touches on the addition of a carbon-capture system at its Steel Works Plant in Burns Harbor, Indiana, which would allow it to capture 50% to 70% of carbon dioxide (CO2) emissions from the facility's blast furnace. Burns Harbor produces about 5 million tons per year of steel. Subscribers can learn more from a detailed project report.

The company won a major legal victory for Burns Harbor earlier this year, when Indiana tax officials reached a settlement with the company to reduce the size of a proposed increase in its tax assessments of the steel mill, according to the Chicago Tribune. A proposed 13.5% increase was dropped to 2.5%.

Executives said Cleveland-Cliffs would maintain its capital-expenditure outlook for full-year 2026 at about $700 million.

By the Numbers

• More than $2.8 billion: Total value of Cleveland-Cliffs projects tracked by Industrial Info
• $700 million: Cleveland-Cliffs' projected total capital expenditures for 2026
• $4.9 billion: Cleveland-Cliffs' revenues for first-quarter 2026

More Time to Mull POSCO Deal

An improving environment for the domestic steel industry is giving Cleveland-Cliffs more time to ponder a strategic partnership with South Korea-based POSCO, following a September 2025 memorandum of understanding (MoU) between the two companies. POSCO's proposed investment would allow it to secure U.S.-made steel and avoid Trump's 50% tariffs, which were not among those affected by the U.S. Supreme Court's February ruling.

Goncalves pointedly said in the earnings call that his company is "no longer in a hurry" to secure an arrangement with POSCO, which could include joint ventures or offtake agreements. No outright sale of either company has been proposed.

"Ongoing disruption in the Middle East has made Cliffs' competitive position stronger and underscores why global steel producers want to partner with Cleveland-Cliffs," Goncalves said in a press release accompanying first-quarter results. "While the current situation has not helped the timeline of a potential deal with POSCO, we continue to negotiate in good faith within the framework of our MoU."

Cleveland-Cliffs also is weighing several proposed improvements at some of its major North America facilities, including a pair of electric-melt furnaces at its Steel Works Plant in Middletown, Ohio, and a relining of its C3 Blast Furnace at its Steel Works Plant in Dearborn, Michigan. The Middletown project would replace a coal-based blast furnace to produce liquid iron, while the Dearborn project would extend the coal-based C3's production into the 2040s.

According to Industrial Info Resources data, both projects could kick off as early as next year, depending on the approval process. Subscribers can learn more from detailed reports on the Middletown and Dearborn projects.

Cleveland-Cliffs' revenues for first-quarter 2026 were reported to be $4.9 billion, compared to $4.6 billion in the first quarter of 2025. The company recorded a first-quarter net loss of $229 million, compared with a net loss of $486 million in the same period last year.

Subscribers can click here for a full list of reports for active and proposed projects from Cleveland-Cliffs.

Subscribers to Industrial Info Resources' GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Improving steel prices and rising demand from the U.S. automotive sector were boons to Cleveland-Cliffs in the first quarter.
• Ongoing disruptions in the Middle East have made the company's competitive position stronger, according to one executive.
• Strong results for the first quarter are giving Cleveland-Cliffs more time to consider a proposed arrangement with POSCO.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).