Cleveland-Cliffs considers selling non-core assets

US steel producer Cleveland-Cliffs is considering selling non-core steelmaking assets, possibly even to foreign investors. This was announced by Chairman, President, and CEO Lorenço Gonçalves during an earnings conference call, according to ArgusMedia.

Cliffs has hired investment bank JP Morgan as an advisor on the potential sale. This move could help the company pay off its debt (Cleveland-Cliffs’ balance sheet shows $7.7 billion in long-term debt).

According to Gonçalves, the recent purchase of US Steel by Japan’s Nippon Steel has shown that foreign firms are interested in American blast furnace steel producers. It is noteworthy that the CEO of Cleveland-Cliffs was opposed to this acquisition from the outset.

“Nippon Steel’s entry into our market and their surprisingly high investment promises underscore the strength and attractiveness of the opportunities here. Foreign investment in Cliffs is becoming an attractive opportunity for other foreign companies,” he said.

Gonsalves also called on the Canadian government to introduce tougher import tariffs to protect the country’s metallurgical industry. Last year, Cleveland-Cliffs acquired one of Canada’s largest steel producers, Stelco. The CEO of Cliffs believes that foreign imports are damaging the Canadian market.

According to the latest report, Cleveland-Cliffs increased its external sales of metal products by 7.5% year-on-year in the second quarter of 2025, to almost 4.3 million tons, with hot-rolled steel accounting for 40% of the volume. In January-June, the figure was 8.43 million tons (+6.3% y-o-y). The average net sales price in the second quarter was $1,015 per short ton, compared to $1,125 in the same period of 2024.

Cliffs’ CEO noted that domestic steel prices remain high, the order book is stable, and the company has plans to reduce costs. He recalled that Cleveland-Cliffs is a major supplier to automakers and that the Trump administration continues to provide strong support to both sectors. Lorence Gonçalves noted the positive impact of tariffs on local production.

Cleveland-Cliffs also updated its forecasts for 2025. In particular, capital expenditures will amount to approximately $600 million ($625 million – previous expectations). The cost of production will decrease by $50/short ton compared to 2024.

As a reminder, Cliffs reduced its external steel sales by 5% year-on-year to 15.6 million short tons in 2024. Revenue from steel production for the period amounted to $18.5 billion, with approximately $5.6 billion, or 30%, coming from sales to direct customers in the automotive industry.