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Cleveland-Cliffs to Idle Three Steel Plants Amid Sluggish Demand

Cleveland-Cliffs steel plant idled due to low demand.

News Summary

Cleveland-Cliffs has announced the indefinite idling of three steel plants this summer in response to weak demand and pricing for high carbon steel sheets. The closures, beginning June 30, will impact approximately 950 workers across facilities in Pennsylvania and Illinois. Despite these shutdowns, the company reassured that its flat-rolled steel production levels will not be significantly affected. Local lawmakers urge discussions on alternatives for the workers affected by the layoffs, underscoring ongoing challenges in the steel industry due to fluctuating demand, particularly from the automotive sector.

Cleveland – Cleveland-Cliffs has announced that it will indefinitely idle three steel plants this summer due to sluggish demand and pricing for steel products, particularly high carbon steel sheets. The idling will begin around June 30, after a required notice period of 60 days.

The affected facilities include two plants located in Pennsylvania, one in Steelton and the other in Conshohocken, as well as a plant in Riverdale, Illinois. This decision will lead to approximately 950 workers being laid off during the shutdowns, reflecting the company’s response to the current market conditions.

The idling of these plants has been attributed to “insufficient demand and pricing,” and the company has stated that it is not related to the tariffs imposed by President Donald Trump. Cleveland-Cliffs has reassured that the idling will not impact its flat-rolled steel production levels significantly.

Earlier in the year, Cleveland-Cliffs had already announced plans to either idle or partially idle two iron ore mines located in Minnesota, which will affect an additional 630 workers. This followed the announcement of another steel plant idling in Dearborn, Michigan, due to weak automotive production, impacting around 600 workers. Although the Dearborn facility will be idled, there is hope that operations could resume once the automotive sector rebounds, especially in light of tariffs’ effects on the industry.

In a broader context, Cleveland-Cliffs is currently pursuing a merger with U.S. Steel, a process that is facing complications due to a $15 billion agreement between U.S. Steel and Nippon Steel being blocked by the Biden administration. In response, both companies have filed lawsuits against the administration over what they allege to be an attempt to monopolize the steel market, which also implicates Cleveland-Cliffs.

In light of these recent announcements, local lawmakers, including State Senator Patty Kim and State Representative Dave Madsen, are urging Cleveland-Cliffs to engage in discussions about alternatives to these closures for the impacted plants and their workers. Senator John Fetterman has also expressed concern regarding the workers and families who will be affected by the layoffs and plant closures.

Cleveland-Cliffs has indicated plans to resume operations at its Cleveland blast furnace, which was idled last year, signaling potential recovery efforts in other areas of the company’s operations. However, the focus remains on the current state of the steel market and the implications of ongoing production adjustments.

This situation reflects broader challenges in the steel industry, where demand has fluctuated significantly over the past few years, particularly influenced by the automotive sector and tariffs. As Cleveland-Cliffs navigates through these operational changes, the company continues to monitor market conditions closely and evaluate potential pathways for both production and workforce management.

The idling of the three steel plants marks a significant response to ongoing economic pressures, highlighting the delicate balance between production needs and market demand within the steel industry.