Cleveland-Cliffs Stock Sinks 9% on Iowa Mega-Mill Plans

CNBC2 min read6 sources

Why did Cleveland-Cliffs stock drop 9%?

Cleveland-Cliffs (CLF) stock fell 9% on Monday to $11.08 as Trump unveiled Mesabi Metallics' $15 billion Iowa mega-mill, the first new American steel plant in 60 years.

Key numbers

Iowa Plant Investment	$15Blargest US steel plant in history
EXIM Bank Financing	up to $10B$770M direct loan already approved for Minnesota mine
Phase 1 Capacity	7.5M tons/yr→ 10M tons/yr at full build
Permanent Jobs	1,750++5,000–6,000 construction jobs (Phase 1)
CLF 1-Day Move	-9% to $11.08vs S&P 500 −0.54%
Projected Economic Impact	$95Bover construction and first decade of operation

What happened

Cleveland-Cliffs (CLF) stock fell 9% on Monday to $11.08 as Trump unveiled Mesabi Metallics' $15 billion Iowa mega-mill, the first new American steel plant in 60 years. The Lee County, Iowa facility will produce 7.5 million tons of defense-grade steel per year at its 2030 launch, eventually reaching 10 million tons annually. The Export-Import Bank will provide up to $10 billion in financing; it already approved a $770 million direct loan for Mesabi's Minnesota iron ore mine last week. India's Essar Group owns Mesabi Metallics, which spent nearly 20 years developing the Minnesota mine before pivoting to build the Iowa mill.

Why it matters

The Iowa mill would be the largest integrated steel plant in U.S. history, reshaping where the country sources defense materials and manufacturing inputs. For existing steelmakers like Cleveland-Cliffs and Nucor, it means a flood of new domestic supply arriving in 2030 — more competition that could push prices lower and hurt profits. For the wider economy, supporters say cheaper domestic steel strengthens supply chains for cars, ships, and weapons; critics note the four-year wait before a single ton is produced.

Who this affects

Marketbearish Medium impact: Steel stocks broadly fell on new long-term supply fears.
Companybearish High impact: Cleveland-Cliffs hit hardest; Canadian steel exposure compounds tariff risks.
Competitorsbearish Low impact: Nucor and Steel Dynamics each slid about 2% Monday.
Industrymixed Medium impact: Adds 10M tons/yr capacity; first US mega-mill since 1960s.

Cleveland-Cliffs vs Nucor, Steel Dynamics


Cleveland-CliffsCLF	$6.4B	-9%	-16.7%	9.9x
NucorNUE	$55.5B	-2%	+77.2%	10.6x
Steel DynamicsSTLD	$33.0B	-2%	+64.5%	10.7x

As of 2026-09-28

How we got here

Jan 1, 2006
Essar Group begins ~20-year iron ore mine development on Minnesota's Mesabi Range.
Sep 24, 2026
EXIM Board approves $770M direct loan for Mesabi's Minnesota iron ore mine.
Sep 28, 2026
Trump unveils $15B Iowa steel plant at Oval Office event; CLF falls 9%.
Jan 1, 2030
Mesabi targets first Iowa steel output at 7.5M tons/yr, defense-grade.