Major U.S. Steelmaker Shutters EAF and BOF Plants as It Refocuses on Core Products
Cleveland-Cliffs Inc., a major player in the U.S. steel and mining industry, will temporarily idle three key steelmaking facilities due to weak market demand and pricing. The company issued federal WARN notices ahead of planned layoffs at operations in Pennsylvania and Illinois. This decision affects plants in Steelton, Conshohocken, and Riverdale, signaling a strategic shift in product focus.
The impacted sites include an electric arc furnace (EAF) mill in Steelton, Pennsylvania; a basic oxygen furnace (BOF) facility in Riverdale, Illinois; and a downstream quenching and annealing complex in Conshohocken, Pennsylvania. These plants produce rail steel, specialty plate, and high-carbon sheet—products the company no longer considers core to its business.
Steelton and Riverdale Facilities Face Indefinite Shutdown
Cleveland-Cliffs operates a 300,000-ton-per-year EAF melt shop in Steelton, mainly producing railroad rails and other niche steel grades. In Riverdale, the company runs a 700,000-ton-per-year BOF mill. Both plants will face indefinite idling starting in June, with no timeline for restarting operations.
“These temporary, indefinite idles are a necessary response to insufficient demand and pricing,” the company stated. The move aligns with Cleveland-Cliffs’ shift toward its core products like flat-rolled steel, which support the automotive and appliance industries.
Financial Pressure and Market Conditions Drive the Decision
The closures follow a challenging year for Cleveland-Cliffs. The company posted a $700 million net loss in 2024, blaming declining domestic automotive production and surging steel imports. CEO Lourenco Goncalves noted that oversupply from abroad and reduced demand in the U.S. forced the company to rethink operations.
Cleveland-Cliffs will release its Q1 2025 financial results on May 7, which will likely provide more insight into its revised strategy. The company has not ruled out reopening the facilities if market conditions improve.
At SuperMetalPrice, we continue to monitor key developments in the steel sector, including capacity changes that may influence steel prices and metal supply trends across North America.
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