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Cleveland-Cliffs ‘No Longer in a Hurry’ on POSCO Deal
CEO Cites Improving Steel Prices, Stronger Auto Industry Demand
Cleveland-Cliffs Inc.’s CEO said improving U.S. steel prices and stronger demand from the American auto industry are taking the pressure off closing a deal with South Korea’s POSCO Holdings Inc.
“Our situation is getting better and that’s changing our perception of how this deal should be taken care of,” CEO Lourenco Goncalves said April 20 in an earnings call. “We are no longer in a hurry.”
Cliffs still wants to reach an agreement with POSCO, Goncalves said, adding that discussions are “active” and that a deal could come in the second quarter “or slightly later.” Disruptions in the Middle East and their impact on South Korea have slowed progress, he said.
The timeline marks a delay from the company’s initial projection in October that it would unveil the details of a pact in the fourth quarter of 2025 or the first quarter of this year. The companies have not disclosed details of the potential arrangement — which Cliffs previously described as transformative — beyond saying it would help POSCO expand its U.S. customer base.
Shares of Cliffs fell as much as 11% April 20 in New York in its biggest intraday decline since Feb. 12, after posting first-quarter earnings that included negative free cash flow in the period.
South Korean companies have been seeking deeper footholds in the U.S., with the country committing to invest $350 billion as part of a trade deal with the Trump administration. POSCO’s push to partner with Cliffs follows President Donald Trump’s tariffs on imported steel, which has hampered foreign producers selling to US customers.
