Cleveland-Cliffs Targets 2026 Recovery After Challenging 2025; Signs MOU with POSCO
Why It Matters for Steel Warehouse
Cleveland-Cliffs Indiana Harbor and Burns Harbor are among the most critical upstream HRC and pickle-line substrate suppliers for Steel Warehouse's South Bend and Portage, Indiana operations. CLF's 2026 recovery posture — higher volumes, lower costs, and continued pricing discipline — suggests a stable-to-improving supply relationship. However, the POSCO MoA is worth monitoring: if CLF moves toward advanced AHSS and EV-grade steel development with POSCO, it may shift CLF's production mix away from commodity flat-rolled toward higher-value grades, potentially affecting availability and pricing of the grades Steel Warehouse buys most.First reported: 2026-03-08 Section: C — Upstream Mill Operations & Pricing
Cleveland-Cliffs Inc. (NYSE: CLF) closed 2025 with significant challenges: revenue fell ~3% year-over-year to $18.6 billion, the company recorded a net loss of $1.7 billion, and automotive sector weakness combined with global tariff disruptions compressed volumes and margins. However, management entered 2026 with a recovery posture — forecasting 16.5 to 17 million short tons of steel shipments for 2026 (slightly above 2025 levels), a $10/ton reduction in cost of steel, and capital expenditures of approximately $700 million.
In a significant strategic development, Cleveland-Cliffs signed a Memorandum of Agreement (MoA) with South Korea's POSCO in September 2025, targeting a definitive partnership agreement in the first half of 2026. POSCO is the world's sixth-largest steelmaker. The potential CLF-POSCO partnership could involve technology sharing, joint product development, or supply arrangements — particularly relevant given POSCO's leadership in advanced high-strength steel (AHSS) for automotive applications. Cleveland-Cliffs has also already secured incremental automotive business from OEM clients repatriating North American production in response to vehicle tariffs.
CLF also raised steel prices twice in March (per GMK Center reporting), following Nucor's lead in pushing domestic HRC toward and through the $1,000/ton barrier. The company's Indiana Harbor and Burns Harbor blast furnace operations remain the largest supplier of flat-rolled steel to Midwest service centers and automotive stampers — making CLF's 2026 operational and financial trajectory a critical upstream variable for Steel Warehouse.
CLF has strategically idled some capacity over the past 18 months to support pricing discipline, with management signaling continued supply management rather than volume maximization.
Sources
- Cleveland-Cliffs Looks to Recover After Challenging 2025 — Manufacturing Dive
- Cleveland-Cliffs 2025 Financial Report: Sales Up 4%, Net Loss of $1.7B — IndexBox
- Cleveland-Cliffs Raises Rolled Steel Prices for Second Time in March — GMK Center
Update — 2026-03-08
Initial entry — story first created. CLF targeting 2026 recovery; POSCO MoA definitive agreement expected H1 2026. Two March price increases confirmed.