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    Analysis

    July 2, 2026

    Cliffs eyes Middletown investment, hurdles remain for Dearborn restart

    Written by David Schollaert

    Cleveland-Cliffs plans to upgrade its ironmaking process at Middletown Works, according to a permit filing with the Ohio Environmental Protection Agency (Ohio EPA).

    The Cleveland-headquartered steel producer told SMU it’s seeking to upgrade and modernize its “flagship steel plant producing automotive-grade steel.”  

    The investment to modernize its No. 3 Blast Furnace at its Middletown, Ohio, facility would include the construction of a cogeneration electric plant, which would generate power through the capture of process gases from iron production.

    The efforts, the company said, would give “relief to the local power grid” and benefit the surrounding Ohio region. 

    “The investment will ensure a competitive future for the steel mill and secure over 2,000 steelmaking jobs in Middletown for decades to come,” a Cliffs spokesperson said.

    A public hearing on the draft permit will be held by the Ohio EPA on July 9, according to the agency’s website. The comment period closes on July 11.

    Dearborn restart

    Cliffs Chairman, President, and CEO Lourenco Goncalves was recently quoted as saying it’s considering restarting idled steelmaking operations at Dearborn Works in Michigan as early as 2027.

    Cliffs clarified to SMU the condition under which they’d bring Dearborn back online: stronger automotive demand.

    The steelmaker said it “needs car manufacturers to demonstrate they are increasing their domestic production before we can seriously consider bringing the blast furnace, steelmaking shop and caster” back in operation.

    “At this time, we have nothing specific to report, and those facilities remain indefinitely idled,” the spokesperson said.

    Recall that Cliffs idled the steelmaking operations back in July 2025 at its Dearborn Works in Michigan due to weak automotive demand.

    The finishing facilities at Dearborn remain operational, including the pickling line tandem cold mill, and continuous galvanizing line.

    Restart talks come as 50% Section 232 tariffs have sharply reduced imports and lifted domestic steel prices. Hot-rolled coil is sitting around the $1,200 per short ton (st) mark, nearly $400/st above last year’s levels.

    But higher steel costs are also squeezing the supply chain, underscoring the tradeoff between protecting supply and stimulating demand. And it’s a reminder of the long timeline true reshoring takes.

    David Schollaert

    David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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