Cleveland Cliffs implements a substantial price increase following the introduction of new tradepolicies that have fundamentally altered market conditions. On June 16, 2025, Cleveland-Cliffsannounced its latest pricing strategy, setting the Cliffs HR Market Price at $950 per ton for Julyspot orders, representing a notable $40 per ton increase from the previous month's pricing of $910 per ton. This strategic pricing adjustment comes at a pivotal moment when the implementationof 50% steel and aluminum tariffs is reshaping competitive dynamics across the North American steel market.

Steel industry News Podcast 09: Cleveland-Cliffs and Nucor Raise Prices as 50% Tariffs ReshapeMarket Dynamics by Steel Industry News

The announcement, delivered by Michael J. Hrosik, Senior Vice President of Commercial atCleveland-Cliffs Steel, reflects the company's response to evolving market conditions that havebeen significantly influenced by enhanced trade protection measures. The priceincrease represents approximately a 4.4% month-over-month adjustment, demonstrating thecompany's strategic positioning within an increasingly protected domestic marketenvironment. Cleveland-Cliffs' decision to raise prices occurs against a backdrop of substantial policy changes that have doubled Section 232 tariffs on steel and aluminum imports from 25% to 50%, effective June 4,2025.

Understanding Cleveland Cliffs' Strategic PricePositioning in 2025

Cleveland-Cliffs' recent price increase announcement represents more than a simple marketadjustment; it reflects a comprehensive strategic response to fundamentally altered competitivedynamics within the North American steel industry. The company's decision to establishthe Cliffs HR Market Price at $950 per ton demonstrates a calculated approach to capturing valuein an environment where enhanced trade protection has significantly reduced foreigncompetition4. This pricing strategy emerges from Cleveland-Cliffs' position as one of NorthAmerica's leading vertically integrated steel producers, with operations spanning from iron oremining through finished steel production.

The $40 per ton price increase from June's $910 pricing represents Cleveland-Cliffs' first upwardpricing adjustment following a period of market volatility that saw significant price fluctuationsthroughout early 2025. industry data reveals that Cleveland-Clifs had previously reduced its hot-rolled coil pricing by $65 per ton in May 2025, bringing prices down from $975 per ton to $910 perton as market conditions softened. The current July pricing adjustment suggests that thecompany believes market fundamentals have strengthened sufficiently to support higher pricelevels, particularly given the protective environment created by enhanced tariff measures.

Cleveland-Cliffs' pricing strategy must be understood within the context of the company's broaderoperational framework and market positioning. As a vertically integrated producer with significantexposure to the automotive sector, the company has been strategically repositioning its operationsto focus on higher-margin flat-rolled steel products while divesting from lower-margin specialtyoperations. The company reported first-quarter 2025 consolidated revenues of $4.6 billion,though it recorded a net loss of $483 million during the period, highlighting the importance ofimproved pricing realization for financial performance recovery.

The timing of Cleveland-Cliffs’ price increase aligns with broader industry trends that have seendomestic steel producers testing pricing power in the wake of enhanced tradeprotection. Competitor Nucor Corporation recently announced its own price adjustments, raisinghot-rolled coil prices by $20 per ton to $900 per ton for most facilities, marking the first increase inten weeks. This coordinated industry movement toward higher pricing suggests that domesticproducers are collectively responding to the changed competitive environment created by doubled Section 232 tariffs.

The Impact of 50% Steel Tariffs on Market Dynamics

The doubling of Section 232 tariffs from 25% to 50% on June 4, 2025, represents the mostsignificant trade policy shift affecting the North American steel industry in recent years. President Trump's announcement of this tariff increase at a Pennsylvania rally was metwith immediate market enthusiasm, with Cleveland-Cliffs' stock price surging approximately 22% following the announcement. The tariff increase applies to steel, aluminum, and theirderivative products from all countries except the United Kingdom, which maintains the 25% rateuntil July 9,2025.

The enhanced tariff structure fundamentally alters the competitive landscape by creating asubstantial cost disadvantage for foreign steel producers attempting to access the U.S. market. With the tariff rate now at 50%, imported steel faces a significant price premium thatdomestic producers can leverage to improve their pricing power and market share. This protectiveenvironment has enabled Cleveland-Cliffs and other domestic steel producers to implement priceincreases with reduced concern about foreign competition undercutting their pricing strategies.

Market participants have noted that the tariff increase has already begun to influence purchasingpatterns and supply chain decisions. The higher import costs have created a floor effect fordomestic steel pricing, allowing companies like Cleveland-Cliffs to maintain higher price levelswithout losing market share to foreign competitors. This dynamic is particularly important forintegrated steel producers like Cleveland-Cliffs, which face higher fixed costs compared to electricarc furnace operators but benefit disproportionately from import protection.

The tariff policy has also generated complex reactions across different industry segments. While domestic steel producers have generally welcomed the enhanced protection,steel-consuming industries have expressed concerns about higher input costs. Cleveland-Clifshas positioned itself to benefit from potential reshoring of manufacturing operations that mayresult from the changed trade environment, particularly in the automotive sector where thecompany maintains significant market share.

Cleveland Cliffs' Financial Performance and Operational Restructuring

Cleveland-Cliffs' first-quarter 2025 financial results reflect the challenging market conditions that preceded the recent tariff increases and pricing improvements. The company reported consolidated revenues of $4.6 bilion for the quarter, representing an increase from $4.3 billion in the fourth quarter of 2024. However, the company recorded a GAAP net loss of $483 million, or $1 .00 per diluted share, with an adjusted net loss of $456 million, or $0.92 per diluted share.

The company's Adjusted EBlTDA showed a significant deterioration, declining to a loss of $174 million in the first quarter of 2025 compared to an Adjusted EBITDA loss of $81 million in thefourth quarter of 2024. This financial performance was attributed to weaker pricing carriedover from late 2024 and early 2025, underperformance of non-core assets, and continuedchallenges in specific market segments.

In response to these financial challenges, Cleveland-Cliffs implemented a comprehensiveoperational restructuring program between March and May 2025. The company decided to fully or partially idle six facilities to optimize its footprint, reposition away from loss-making operations,and release excess working capital. These actions are expected to result in savings of over $300 milion annually, not including additional savings in overhead and improved productivity at other locations.

The idled facilities include the Minorca mine and partial idle of the Hibbing Taconite mine inMinnesota, the blast furnace and steel shop operations at Dearborn Works in Michigan, the Steelton rail facility in Pennsylvania, the Conshohocken plate finishing facility in Pennsylvania, andthe Riverdale compact strip mill in lllinois. Importantly, the company emphasized that these idles are not expected to impact flat-rolled steel output, suggesting a strategic reallocation ofresources rather than an overall reduction in core production capacity.

Market Position and Competitive Advantages

Cleveland-Cliffs has established itself as North America's largest producer of flat-rolled steel andthe largest supplier of steel to the automotive industry, with 36% of its revenue derived from flat-rolled steel sales to automotive customers. This market position provides significant competitiveadvantages, particularly in the current environment of enhanced trade protection and potential manufacturing reshoring.

The company's vertical integration strategy, combining iron ore production with steelmanufacturing, provides cost and reliability advantages compared to domestic competitors. Thisintegrated approach allows Cleveland-Cliffs to control its raw material supply chain, reducing exposure to commodity price volatility and ensuring consistent input quality for its steel production operations. The company's iron ore operations in Minnesota and Michigan provide a stablefoundation for its steel manufacturing facilities in Indiana, Michigan, and Ohio.

Cleveland-Cliffs' focus on high-value-added steel products, particularly those serving theautomotive sector, positions the company to benefit from ongoing industry trends toward lightweight and advanced high-strength steel applications. The company has developed specialized products such as the C-STAR protection system for automotive applications,demonstrating its commitment to innovation in automotive steel solutions, The growing electric vehicle market presents additional opportunities for Cleveland-Cliffs' advanced steel products inbattery enclosures and structural components.

The company's market position has been further strengthened by recent acquisitions, including the 2020 acquisition of AK Steel Holding Corporation, which expanded Cleveland-Cliffs' capabilities inspecialty steel production and automotive applications. The integration of these operations hascreated a more comprehensive product portfolio and enhanced the company's ability to servediverse customer requirements across multiple end markets.

Industry Outlook and Future Implications

The steel industry outlook for 2025 and beyond reflects a complex interplay of trade policy,domestic demand patterns, and global economic conditions. Cleveland-Cliffs' recent pricing actions occur within a broader context of industry consolidation and strategic repositioning that is reshaping the competitive landscape. The company's ability to maintain higher pricing levels will depend significantly on the sustainability of current trade policies and the development of domestic demand in key end markets.

Automotive sector demand, which represents Cleveland-Cliffs' largest end market, is expected toexperience continued evolution driven by the transition to electric vehicles and changing consumer preferences. The global automotive structural steel market is projected to grow fromapproximately $129 billion in 2025 to $179 billion by 2035, representing a compound annualgrowth rate of 3.3%. This growth trajectory, combined with potential reshoring of automotive production, could provide sustained demand for Cleveland-Cliffs' steel products.

Infrastructure and renewable energy applications represent additional growth opportunities for thedomestic steel industry. Cleveland-Cliffs has positioned itself to benefit from increasedinfrastructure spending and renewable energy development, which typically require significant quantities of structural steel products. The company's capabilities in electrical steel production also align with grid modernization and renewable energy infrastructure development.

The effectiveness of current trade policies in supporting domestic steel producers will be crucial for long-term industry health. While the 50% tariffs provide immediate protection from foreign competition, sustained industry growth will require continued domestic demand development and productivity improvements. Cleveland-Cliffs' operational restructuring initiatives and focus on high-value products position the company to capitalize on these opportunities while managing ongoing competitive pressures.

Rare Earth Mineral Risks for U.S. Automotive and Tech Industries

A major vulnerability for the U.S. automotive sector-and for industries like solar and semiconductors-is the heavy reliance on rare earth minerals from China. China produces the vast majority of these critical materials, which are essential for electric vehicle batteries, advanced automotive electronics, solar panels, and microchips. Recent export controls and licensing requirements imposed by China have already caused supply chain disruptions, leading to production delays and operational shutdowns for U.S. manufacturers. Although a temporary trade agreement has restored some access, the arrangement is fragile and could be revoked, leaving American industries exposed to sudden shortages and price spikes.

lf rare earth minerals become even harder or more expensive to obtain, the ripple effects could besevere: automakers may be forced to slow or halt EV and hybrid production, solar panel manufacturing costs could rise, and the chip industry could see major fabrication delays. This situation highlights the urgent need for the U.S. to diversify its supply chains and invest in domestic rare earth processing to protect its key manufacturing sectors from future geopolitical shocks.

Cleveland Cliffs Price History Analysis

The evolution of Cleveland-Cliffs’ pricing strategy over the past year demonstrates the company's responsiveness to changing market conditions and its ability to adapt to evolving competitive dynamics. The following table presents a comprehensive overview of the company's hot-rolled coil pricing adjustments from May 2024 through June 2025:

This pricing history reveals several key trends in Cleveland-Cliffs’ market strategy. The period from May 2024 through December 2024 showed generally upward pricing momentum, with the company successfully implementing multiple price increases that brought hot-rolled coil pricing from $545 per ton to $800 per ton. This 46.8% increase over seven months reflected improving market conditions and the company's ability to capture value in a strengthening demand environment.

The early 2025 period demonstrated significant price volatility, with Cleveland-Cliffs implementing both increases and decreases in response to rapidly changing market conditions. The February 2025 timeframe was particularly notable, with the company achieving its highest pricing levels ofthe period, reaching $900 per ton on February 21, 2025. This pricing level represented a 65.2% increase from the May 2024 baseline and reflected the company's confidence in market fundamentals at that time.

The May 2025 price reduction to $910 per ton, representing a $65 per ton decrease from Aprillevels, demonstrated Cleveland-Cliffs' willingness to adjust pricing in response to market pressures. This adjustment reflected broader industry dynamics, including weak end demand reduced scrap prices, and decreased business activity following a period of intense buying activity. The subsequent June 2025 increase to $950 per ton suggests that the company believes market conditions have stabilized and strengthened, particularly in light of the enhanced tariff protection.

Conclusion: Navigating the New Steel Market Reality

Cleveland-Cliffs' announcement of a price increase to $950 per ton for July 2025 orders represents a change in market dynamics. The company's strategic positioning reflects its confidence in the protective environment created by 50% steel and aluminum tariffs, which have fundamentally altered competitive conditions and created new opportunities for domestic producers. This pricing adjustment, representing a 74.3% increase from May 2024 baseline levels, demonstrates the cumulative impact of trade policy changes, operational improvements, and strategic market positioning.

The success of Cleveland-Cliffs' pricing strategy will ultimately depend on the sustainability of current trade policies, the development of domestic demand in key end markets, and the company's ability to execute its operational restructuring initiatives. The company's focus on high-value automotive applications, combined with its vertically integrated supply chain and enhanced trade protection, positions it to benefit from potential reshoring trends and continued infrastructure investment. As the steel industry continues to adapt to this new competitive reality, Cleveland-Cliffs' strategic decisions will serve as important indicators of broader market trends and the effectiveness of current trade protection measures in supporting domestic manufacturing competitiveness.