NinjaTMSCleveland-Cliffs Slows POSCO Deal as Steel Prices, Auto Demand Rise
CEO says company no longer rushing joint venture as domestic market conditions improve
Cleveland-Cliffs is pumping the brakes on a joint venture with South Korean steelmaker POSCO, citing stronger U.S. steel prices and rising demand from automakers. CEO Lourenco Goncalves said the company is "no longer in a hurry" to close the deal.
Why is Cleveland-Cliffs slowing the POSCO deal?
Improving market conditions have reduced the urgency. Goncalves pointed to two factors: U.S. steel prices are climbing, and the American auto industry is ordering more material. Both shifts strengthen Cleveland-Cliffs' negotiating position and reduce the immediate need for a partnership.
What this means for carriers
Steel moves by truck. Rising auto demand typically translates to more coil and slab shipments from mills to assembly plants and tier-one suppliers — flatbed and specialized haulers should watch order books at Detroit Three plants and transplant facilities in the South. If Cleveland-Cliffs is seeing stronger domestic orders, that volume will need to move. The POSCO deal, whenever it closes, could eventually shift some production geography, but for now the story is domestic steel moving to domestic auto plants.
