Cleveland Cliffs idles three steel plants amid demand slump

In the summer of 2025, Cleveland Cliffs, a steelmaker based in the United States, announced its decision to indefinitely idle three of its steel plants. The plants affected are located in Steelton and Conshohocken in Pennsylvania, as well as one in Riverdale, Illinois. This decision was primarily driven by sluggish demand and low pricing for certain products, including high carbon steel sheets and rail products. The company stressed that the idling was unrelated to any tariffs imposed by the Trump administration. Approximately 950 workers will be impacted by this decision, leading to their temporary unemployment as the plants undergo shutdown procedures. This adjustment in operations comes on the heels of Cleveland Cliffs facing challenges in the marketplace, demonstrating the volatility of the steel industry amidst fluctuating demand. The company also indicated that the idling of these plants is a necessary response to a market situation where they have observed insufficient demand for the products those facilities produce, such as rail and specialty plate. The announcement was made during a press release from the company's headquarters, and they indicated that the idling would begin around June 30, which follows a 60-day notification period mandated by federal law. In terms of the broader context, the steel industry has faced numerous challenges over the past few years. Factors such as the downturn in automotive production have affected steel demand, leading companies like Cleveland Cliffs to re-evaluate their production strategies. Just prior to this announcement, Cleveland Cliffs had already announced plans to idle or partially idle two iron ore mines in Minnesota, impacting around 630 workers. Furthermore, in March 2025, they decided to idle a steel plant in Dearborn, Michigan, which affected approximately 600 employees and was attributed to weak automotive production in the United States. Despite these setbacks, Cleveland Cliffs has indicated a potential return to operations at some facilities once market conditions improve. For instance, they mentioned a plan to resume operation at a previously idled blast furnace in Cleveland, reflecting their strategic focus on core business areas and intended recovery as market conditions change in the future. Cleveland Cliffs remains committed to navigating the complexities of the steel market while ensuring that their operational adjustments align with their long-term business objectives.