Steel Mills
July 30, 2020
Cleveland-Cliffs Sees Opportunities in Auto
Written by Sandy Williams
Cleveland-Cliffs is getting back to normal after idling 15 facilities in three months due to the impacts of COVID-19. As of today, all facilities, including the AK Steel Dearborn furnace, are back to operation with the exception of North Shore and Tilden, which will resume next week. Idling costs of around $50 million will be reflected in third-quarter results and be minimal in the fourth quarter, the company said.
The shutdown of the auto industry directly impacted AK Steel shipments as well as pellet deliveries for Cleveland-Cliffs. Flat-rolled steel shipments totaled 619,000 tons for revenue of $715.1 million. Mining and pelletizing sales volume of 4.8 million tons included 1.0 million tons of intercompany sales and resulted in revenue of $489 million. The company recorded a net loss of $108 million for the second quarter compared to net income of $161 million in Q2 2019. Revenue for Cleveland-Cliffs totaled $1.1 billion with total operating costs of $1.3 billion.
