Cleveland cliffs

[Guest]

I cannot remember what the full background was that led Cliffs to purchase the steelmaking operations of various companies, but it seemed to me at the time that it was a move made in at least some part due to the fact that the company could not afford for those businesses to go defunct and kill their mineral operations. I may be entirely wrong in this but that is what I recall being my first impression of its when I first read of these deals.

[shipwatcher125]

Sykes is having substantial turbine work done this winter

[Denny]

The Lee A. Tregurtha’s first trip of 2025 from Lay-Up was from Duluth CN Ore Dock to Cleveland and NOT their normal Marquette to Dearborn ore run as they have so often done in the past! Kaye E. Barker as far as I know is up loading now in Marquette. I wonder if she will unload in Dearborn or else head someplace else to unload? Sometimes Interlake unloads at Toledo from Marquette so, we’ll see where the Kaye goes to unload her ore pellet cargo? Also noticed so far, both the Block and Sykes have yet to set sail for the 2025 shipping season! Could all of this with Cleveland Cliffs then be effecting and having an impact then on the Block and Sykes? Just curious is all on this one!

[Guest]

Well I guess the other shoe dropped with the idling of the Dearborn blast furnace. Interesting in the choice of plants to idle. Safe to assume that Dearborn is the least cost efficient mill for Cliffs?

Wonder if Cliffs has information that auto stamping plants are cutting back on orders. Wonder how much ore is on the ground in Dearborn or up north.

[Mr Link]

Today (Mar 25, 2025) Hyundai announced it will build a new $5.8 billion electric arc furnace (EAF) steel mill on the Mississippi River in Louisiana. The new mill is projected to produce 2.7 million tons of ultra-low carbon steel per year from 3.6 million tons of imported "ore" (if this is to be an EAF I think the feed stock will be scrap, pig iron or direct reduced iron, and not raw ore.) Projected customers include Hyundai itself, Kia and other US automakers.

Sounds like more tough competition for Cliffs, focusing on high-value automotive steel.

[Chiief1]

I recall dreadful times where in 1982 the mills slowed and mines cut way back. Columbia Transporations 1 year old 1000 footer Columbia Star ( last footer to enter service) didn’t even fit out until early June.

[Guest]

Which one of the mines produces the product for the Toledo DRI plant?
In addition to less taconite, don't all the mines take delivery of lime stone to make the pellets?

And of course the Sandusky coal runs are pretty much all coking coal to steel mills. All three could be impacted.

[Guest]

I compile a spreadsheet of weekly raw steel production from the American Iron and Steel Institute and the production from the Great Lakes region has been down 75,000 to 100,000 since the beginning of the year versus the same period in 2024.

Just to clarify what I had written. Weekly raw steel oroduction in the Great Lakes region is down 75,000 to 100,000 tons per week when compared to the same period in 2024.

[Guest]

I compile a spreadsheet of weekly raw steel production from the American Iron and Steel Institute and the production from the Great Lakes region has been down 75,000 to 100,000 since the beginning of the year versus the same period in 2024.

[Guest]

I was wondering when the other shoe would drop. I follow a few guys on auto guys on YouTube and the automakers have way too many cars in inventory. That and I'm sure the appliance industry is hurting too. And the commercial building business - who needs another office building or store.

Next step will be assembly line shutdowns.

[Geest]

Wow, the idling of the entirety of the Minorca operation will certainly have a major impact, although I do believe Minorca pellets only run to the mill at Indiana Harbor and on rare occasion to Cleveland, though I could be wrong. The Hibbing reduction will certainly impact the operations of the two footers that Cliffs charters specifically for that trade, Burns Harbor and Stewart Cort.

[Guest]

Can’t say that I’m surprised about this news.

[Mr Link]

From the articles and WARN notices I read, production at Minorca Mine is being temporally suspended in May while production at Hibbing Taconite is being reduced, but not suspended.

Per Yahoo Finance, Cleveland Cliffs stock has lost 55% of its value in the past year. And per the attached WARN notices, they have large pellet inventories due to over production in 2024. Where those inventories are located (mine, dock, or mill) will likely influence how much shipping is affected.

Also attached are 2024 data sheets on Minorca and Hibbing Taconite mines. Last I knew, Minorca shipped mostly through Two Harbors to Indiana Harbor while Hibbing Taconite ships to Burns Harbor via Superior, WI (BNSF).

[Mn bob]

Cleveland cliffs is shutting down two of there mines on the iron range in Minnesota. 600 people getting laid off. This will really affect shipping this year. There will be several ships not sailing this year.