Cleveland-Cliffs Restores 93% Furnace Utilization After Resolving 2025 Delays
Cleveland-Cliffs reported full resolution of its 2025 operational setbacks, including pellet plant outages and rail delays, raising furnace utilization to 93%. Management said normalized supply chains and 15% higher January shipments will support a return to full capacity by Q2 2026, boosting margin outlook.
1. 2025 Operational Setbacks
In 2025, Cleveland-Cliffs faced significant disruptions across its integrated steel facilities due to pellet plant outages, rail network congestion and scheduled furnace maintenance. These issues collectively reduced average daily output by approximately 25%, strained raw material inventories and delayed customer deliveries.
2. Resolution and Utilization Improvement
By early 2026, pellet plant availability has been restored to 100%, rail bottlenecks have been cut by half and furnace utilization has climbed from 75% to 93%. Management attributes these improvements to complete maintenance cycles and optimized logistics partnerships.
3. Production and Margin Impacts
Higher operational reliability drove a 15% increase in steel shipments in January year-over-year, alleviating backlogs and stabilizing selling prices. This uplift in volume and better cost control contributed to a rebound in quarterly EBITDA margins.
4. 2026 Outlook
Cleveland-Cliffs now targets full nameplate capacity by the second quarter of 2026, with raw material cost inflation expected to moderate. The company forecasts double-digit EBITDA margins for the year, supported by normalized operations and stronger market demand.