Steelmakers operating on the Iron Range have expressed renewed optimism for demand through 2027, projecting a more sustainable production stretch as opposed to another short-lived rebound.
Nippon Steel increased its profit forecast 32% this week after a strong second quarter by its U.S. Steel subsidiary. It also raised profit expectations for U.S. Steel and increased the per-ton rate forecast of U.S. hot-rolled steel by $100.
The Japanese steelmaker purchased the iconic American brand in June 2025 after an 18-month tug of war with two U.S. presidents. It cautioned a year ago that the acquisition would result in some losses while Nippon infused its technology into the American operations.
U.S. Steel owns and operates Keetac and Minntac, with a partial ownership of Hibbing Taconite.
“U.S. Steel drove our group earnings,” said Takahiko Iwai, chief financial officers of Nippon Steel, at a news conference this week, according to Reuters.
That outlook came on the heels of Cleveland-Cliffs reporting higher demand and increased prices as the basis for its bullish outlook the rest of this year and into 2027.
It remains unknown what sort of market rebound would trigger Cliffs to activate more than 630 workers laid off at Iron Range mines since last year. Minorca Mine and part of Hibbing Taconite were idled in 2025 as the company worked through a large stockpile of pellets.
Both Cliffs and Nippon are currently engaged in contract talks with the United Steelworkers.
The sunnier outlook ended a potential sale of the company’s hot briquetted iron facility in Toledo, Ohio, and delayed partnership talks with the South Korean-based POSCO. If the sustained rebound does occur, and the impact of tariffs hold, the demand for domestic iron ore and direct reduced iron pellets would also stand to increase.
Celso Goncalves, the newly-minted president of Cliffs and its chief financial officer, said many of the offers it received for on-sale properties were opportunistic when the market was in the dregs. He also noted that talks with POSCO have continued despite little progress.
“Valuation and structure are important and we’re not desperate to do anything,” he said on July 23. “The United States is the best market in the world and it’s not cheap to play in our sandbox.”
Automakers are also signaling the same sort of optimism on the demand for new cars from consumers, bucking the narrative that higher costs are changing some Americans’ habits.
More broadly, automakers had mixed results in the second quarter.
Mary Barra, the chair and CEO of General Motors, predicted an uptick in 2027 during a July 21 earnings call. GM reported earnings that beat Wall Street expectations in the second quarter, driven by pickup truck and SUV sales.
“Our employees, our dealers and our suppliers are all making important contributions that continue to drive our success,” Barra wrote in a letter to shareholders. “Their commitment enables us to win in a dynamic market, and their efforts are leading us to raise our 2026 guidance for the second time.”
