Cleveland-Cliffs Stock Gets a JD Vance Boost

Vice President JD Vance delivers remarks on the Trump administration’s economic agenda at the Cleveland-Cliffs Middletown Works steel production facility in Middletown, Ohio, on August 21, 2026. (Leandro Lozada / AFP via Getty Images)

Vice President J.D. Vance visited Cleveland-Cliffs’ Middletown Works in Middletown, Ohio, on Friday, touting America’s manufacturing renaissance. It’s helping Cliffs’ stock.

Shares of the steel maker were up 4.8% in late trading at $11.26, while the S&P 500 was up 0.5%.

The move came after the company announced it was modifying an investment plan partly funded by the Energy Department. Instead of a $1.3 billion capital outlay from Cliffs for new facilities, Cliffs will spend about $500 million, and $1 billion in total, including grants, to refurbish the existing blast furnace.

A blast furnace uses coal, iron ore, and limestone to make pig iron, which is converted into steel using another process. Blast furnaces are huge facilities that can produce millions of tons of molten iron each year.

Vice President J.D. Vance was on hand to celebrate the announcement. “I’m going to talk about steel and America’s comeback,” said Vance, adding that political parties have spent the past four decades telling Americans it didn’t matter if products were manufactured here.

The Trump administration is dedicated to bringing manufacturing back to the U.S.,, he added. That’s been the goal of both political parties for a while. The Trump administration has used tariffs and the One Big Beautiful Bill Act. The Biden Administration passed the Chips Act and Infrastructure Investment and Jobs Act, to name two.

The goal is to offset recent declines in manufacturing. The U.S. imports about $3 trillion of manufactured goods each year, up about 40% over the past decade, according to McKinsey. The trade deficit in manufactured goods is up about 120% over that span, to $1.2 trillion annually.

Steel production in the U.S. has essentially been flat over those 40 years Vance referenced, while steel imports have roughly doubled.

Eventually, more manufactured goods should lead to more domestic steel production, which is what Cliffs is preparing for. “We are going to upgrade the iron-making furnace, implement cutting-edge new technology to optimize furnace operation and improve the air quality,” added Vance.

The Middletown Works has operated for more than 100 years. Cliffs acquired it when it bought AK Steel in 2020. Today, it has coking ovens, which convert coal for use in the blast furnace, steel converting furnaces as well as rolling mills and coating mills that turn raw materials into steel for cars, cabinets, and myriad other products.

As for the stock move, the investment is actually a little smaller, which investors might prefer.

Gains leave Cliffs’ stock up about 12% over the past 12 months. Steel prices typically impact steel stocks. Benchmark prices are at about $1,200 per ton, up from about $800 a year ago.

Higher prices have helped earnings estimates. Cliffs is now expected to earn about 85 cents a share in 2027, up from estimates for 65 cents a year ago.

Write to Al Root at allen.root@dowjones.com

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