Cleveland-Cliffs Sees Improved Outlook for 2026

Steel producer cites robust order book, better pricing, and leaner costs after challenging 2025

Published on Feb. 9, 2026

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Cleveland-Cliffs (NYSE: CLF) executives said the company entered 2026 with a 'robust order book,' improving pricing, and a leaner cost structure after a challenging 2025 marked by import pressure, weaker vehicle production, and unfavorable slab contract economics. The company spent 2025 'fixing what needed to be fixed,' including shutting down underperforming assets and terminating an index-based slab supply agreement with ArcelorMittal that became 'very onerous' in its final year.

Why it matters

Cleveland-Cliffs' improved outlook for 2026 reflects broader trends in the steel industry, including the impact of Section 232 tariffs, the shift toward domestically produced steel, and the company's efforts to optimize its operations and cost structure. The termination of the unfavorable slab contract is expected to provide a significant EBITDA boost.

The details

Management cited an improving market backdrop entering 2026, pointing to Section 232 tariffs at 50%, 'melted and poured' requirements, and a shift in market dynamics tied to new galvanizing capacity coming online in the U.S. Cleveland-Cliffs also said it has been able to reallocate melting capacity previously used for low-margin slab orders toward higher-margin flat-rolled products. The company signed multi-year fixed-price contracts with all major OEM customers during 2025, increasing market share and securing high-margin business expected to flow through 2026.

  • Cleveland-Cliffs acquired Stelco on Nov. 1, 2024.
  • The Canadian government implemented restrictions late in the fourth quarter of 2025 that were 'insufficient and limited in scope' but 'able to stop the bleeding,' with improved Canadian pricing and shipments in the last month.
  • Cleveland-Cliffs is targeting signing a definitive agreement with POSCO in the first half of 2026.

The players

Lourenco Goncalves

Chairman, President and CEO of Cleveland-Cliffs.

Celso Goncalves

Chief Financial Officer of Cleveland-Cliffs.

ArcelorMittal

A global steel company that had a slab supply agreement with Cleveland-Cliffs that became 'very onerous' in its final year.

POSCO

A South Korean steel company that has a memorandum of understanding with Cleveland-Cliffs, which the company calls its 'number one strategic priority.'

Stelco

A Canadian steel company that Cleveland-Cliffs acquired on Nov. 1, 2024.

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What they’re saying

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— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.