Cleveland-Cliffs Shares Rise After Strong 2027 Profit Outlook

what happened

Cleveland-Cliffs shares climbed after the steelmaker forecast that its 2027 profit would be the highest since 2021, according to the Wall Street Journal. The outlook rests on a tight steel supply that has pushed prices higher. The company also delayed the refurbishment of a blast furnace at its Burns Harbor mill in Indiana, from next spring until April 2028, so the furnace stays running while demand is strong.

Chief Executive Lourenco Goncalves said he would restart an idle blast furnace at the Dearborn, Michigan, plant if automakers agreed to buy more U.S.-made steel. He criticized General Motors for continuing to build vehicles in South Korea and urged Ford to stop using aluminum in the body of its F-150 pickup. The company guided for adjusted earnings above $4 billion next year, versus $37 million in 2025 and $773 million in 2024.

why it matters

For markets, the forecast signals persistent steel tightness in the U.S. and firm pricing power across the sector. A projection of this scale changes the picture for a company coming off weak years, which is why the stock is reacting to the revised expectations. Automakers' sourcing decisions could also affect both demand and margins for domestic steelmakers.

market impact

US steel: tight supply and high prices support Cleveland-Cliffs earnings and the sector

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