Cleveland-Cliffs Inc. (CLF): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into Cleveland-Cliffs Inc.'s current market footing as 2025 wraps up, wanting the hard numbers behind the headlines, not just corporate fluff. Honestly, the picture is sharp: Q3 revenue landed at a solid $4.7 billion, driven by an average steel selling price of $1,032/ton, with automotive sales making up 30% of that steelmaking revenue. As a seasoned analyst, I can tell you this is all about their strategy for value-added flat-rolled steel and their sole domestic production of GOES. Below, I've distilled their entire marketing mix-Product, Place, Promotion, and Price-using these fresh figures to show you exactly how their vertical integration and North American focus translate into near-term action, like facility optimization and securing long-term auto supply agreements. This is the precise breakdown you need to see their strategy in action.

Cleveland-Cliffs Inc. (CLF) - Marketing Mix: Product

Cleveland-Cliffs Inc.'s product strategy centers on being the largest flat-rolled steel producer in North America, with a distinct focus on value-added flat-rolled steel, particularly for the demanding automotive sector. You should know that the company is vertically integrated, controlling the process from the ground up, which is a significant differentiator in product quality and supply chain reliability. This integration spans from iron ore mining in Minnesota and Michigan, through iron making, pellet production, direct reduced iron (DRI), and ferrous scrap processing, all the way to primary steelmaking, rolling, finishing, and downstream activities like hot and cold stamping of steel parts and components.

The core of the product volume for Cleveland-Cliffs Inc. in the third quarter of 2025 reflected this focus on higher-value flat-rolled products. Total steel product sales volumes for Q3 2025 were 4.0 million net tons. The key mix breakdown by volume for that quarter was as follows:

The emphasis on the automotive sector is clear when looking at revenue contribution; direct sales to the automotive market accounted for $1.4 billion, or 30% of the total steelmaking revenues of $4.6 billion in Q3 2025. This focus supports a higher average selling price (ASP), which was $1,032 per net ton in Q3 2025, up $17 per net ton from the prior quarter, largely driven by this richer automotive mix.

Cleveland-Cliffs Inc. holds a unique position as the sole domestic producer of Grain-Oriented Electrical Steel (GOES) in North America, which is critical for the energy transition and electrification trends. This electrical steel, including the MOTOR-MAX® High Frequency Non-Oriented Electrical Steels, is essential for electric vehicle (EV) components. Beyond flat-rolled and electrical steels, the product portfolio is quite broad, encompassing:

• Stainless steel products, with over 50 alloys formulated for varying needs.
• Carbon and high-strength low alloy (HSLA) steel plates, used in storage tanks and wind towers.
• Carbon and stainless steel tubing products.
• Tin mill products.

Regarding the planned expansion into downstream finished goods, the new electrical transformer plant in Weirton, WV, which was planned as a $150 million investment with $50 million from the State of West Virginia, has seen its capital allocation paused. As of the first quarter of 2025 results, Cleveland-Cliffs Inc. decided to halt investment in the project due to financial pressures and changes in scope from a project partner, meaning the expected operational start, which was previously targeted for late 2025 or early 2026, is indefinitely postponed as of May 2025. The company is instead sharpening its focus on its core strength of supplying steel to the automotive industry.

Cleveland-Cliffs Inc. (CLF) - Marketing Mix: Place

Cleveland-Cliffs Inc.'s 'Place' strategy centers on its vertically integrated North American operational footprint and its direct-to-customer distribution model, heavily skewed toward the automotive sector.

The physical distribution network spans the United States and Canada, with primary steel producing and finishing facilities located across Illinois, Indiana, Michigan, Ohio, Pennsylvania, and Ontario, Canada, following the Stelco Acquisition. Overall, Cleveland-Cliffs Inc. has an aggregate annual configured production capacity of approximately 23.0 million net tons of raw steel. The core production assets include eight blast furnaces and five EAFs (Electric Arc Furnaces).

The distribution channel prioritizes direct sales, especially to major end-use customers. For the third quarter of 2025, direct sales to the automotive market accounted for $1.4 billion, representing 30% of steelmaking revenues. This focus is supported by nine galvanizing plants specifically dedicated to high-spec automotive-grade steels. Furthermore, the company announced in Q3 2025 the signing of multi-year agreements with all major automotive OEMs, locking in higher sales volumes through 2027 or 2028.

The distribution strategy in 2025 involved significant footprint optimization to manage costs amid market conditions. The company announced plans to fully or partially idle six facilities.

The operational adjustments included:

• Idling operations at the Dearborn, Michigan plant, affecting about 600 employees.
• Idling two iron ore mines in Minnesota, resulting in layoffs for 630 employees.
• Indefinitely idling three steel plants (Steelton, Conshohocken, Riverdale), impacting approximately 950 workers.

These maneuvers are projected to generate annual fixed cost savings of $300 million.

Cleveland-Cliffs Inc. is actively reshaping its asset base by considering divestitures of non-core assets to pay down debt, which stood at $7.7 billion in long-term debt as of July 2025.

The company is also exploring changes to major low-carbon steel projects, such as the hydrogen-powered direct reduced iron (DRI) plant, which had an initial evaluation cost of $1 billion-plus.

Cleveland-Cliffs Inc. (CLF) - Marketing Mix: Promotion

You're looking at how Cleveland-Cliffs Inc. communicates its value proposition to the market as of late 2025. The promotion strategy heavily leans on reinforcing its domestic strength and securing long-term, high-value customer relationships, especially in the automotive sector, which is a key audience for investor and customer messaging.

Securing the Automotive Backbone Through Long-Term Commitments

The primary promotional message to the automotive industry centers on supply certainty, a direct counterpoint to global volatility. Cleveland-Cliffs Inc. has been actively promoting its success in locking in major Original Equipment Manufacturers (OEMs) with fixed-price contracts. These accords are for industry-standard sheet steel and run for up to three years, a significant departure from the company's previous typical one-year increments. This duration signals to the market that key players, including General Motors Co., are hedging against inflation by securing domestic input prices through 2027/2028. This focus on multi-year agreements is a core part of the promotional narrative, assuring customers of supply stability.

Advocacy and the Tariff Tailwind

Public advocacy for trade policy is a major promotional lever, directly tied to demand drivers. Cleveland-Cliffs Inc. has been a vocal proponent of the increased Section 232 tariffs on imported steel and aluminum, which were hiked from 25% to 50% effective June 4, 2025. The company frames this policy as essential for safeguarding the domestic supply chain. The promotional math is stark: this 50% tariff effectively creates a $300-$500/ton price spread between U.S. and global steel, which could translate to over $1 billion+ in annual EBITDA if sustained. This policy success is used to promote the value of American-made steel.

The impact on pricing is a key promotional data point, showing the immediate benefit of this advocacy:

Investor Messaging: Vertical Integration and Resilience

Investor relations materials consistently highlight the company's fully vertically integrated structure as a differentiator. This structure covers everything from the mining of iron ore and production of pellets and direct reduced iron to processing ferrous scrap, primary steelmaking, and downstream finishing. This integration is promoted as the source of domestic supply chain resilience, especially when contrasted with external market shocks. For instance, the company's Q3 2025 performance showed a rebound in Adjusted EBITDA to $143 million, up 52% over the prior quarter, which management attributed to the new trade environment.

Key financial metrics used to promote stability and operational control include:

• Total Liquidity as of September 30, 2025: $3.1 billion.
• Projected Annual Savings from Efficiencies: $300 million.
• 2025 Capital Expenditures Budget: Reduced to approximately $525 million.
• Q3 2025 Steel Product Sales Volumes: 4.0 million net tons.

Strategic Global Alignment and Capacity Commitment

A significant promotional announcement involved a strategic international partnership. Cleveland-Cliffs Inc. executed a transformative Memorandum of Understanding (MOU) with POSCO, South Korea's largest steel producer, on September 17, 2025. This agreement is promoted as facilitating the relocation of foreign industrial clients' production to the U.S., aligning with national policy goals, and is expected to be highly accretive to shareholders. Formal definitive agreement details are anticipated in the fourth quarter of 2025 or first quarter of 2026, with closing expected in 2026.

This high demand, driven by both domestic policy and strategic alignment, has led to a hard stop on short-term sales. Cleveland-Cliffs Inc. halted new spot orders for hot-rolled coil (HRC) for December 2025 delivery, citing fully committed capacity. Only existing contract customers can place orders, and lead times for new commitments are now extending into January 2026. This action serves as a powerful, real-time promotion of the strength of their order book and the immediate impact of the 'Melted and Poured in USA' market shift.

Cleveland-Cliffs Inc. (CLF) - Marketing Mix: Price

You're looking at how Cleveland-Cliffs Inc. translates its operational strength into customer-facing value, and that starts with price. The overall revenue picture for the third quarter of 2025 gives you the top-line context for their pricing power. Specifically, Cleveland-Cliffs Inc. reported a consolidated revenue of $4.7 billion for Q3 2025.

This revenue was supported by the realized selling price for their core product. For Q3 2025, the average steel selling price landed at $1,032/ton. This price point reflects a strategic stance, especially when you consider the recent upward momentum in the market. For instance, pricing power was clearly demonstrated by a $40 per ton hot-rolled coil price increase announced in June 2025, moving the offer price to $950 per ton for July orders from the previous $910 per ton in June. That move signaled confidence in the market fundamentals following the tariff adjustments. Honestly, the ability to push prices up after a period of volatility shows you where management feels the floor is set.

Effective pricing also comes from knowing where the demand is strongest, which directly influences the sales mix and realized pricing. The automotive segment remains the most critical revenue driver, which is key because those are typically higher-value, contracted sales. Here's how the steelmaking revenue broke down by end-market for Q3 2025:

• Automotive sales were the largest segment at 30% of Q3 steelmaking revenue, equating to $1.4 billion.
• Infrastructure and Manufacturing accounted for 29% of steelmaking revenue, or $1.3 billion.
• Distributors and Converters represented 28% of steelmaking revenue, or $1.3 billion.
• Sales to Steel Producers made up the remaining 13%, totaling $591 million.

To maintain competitive pricing while securing these key automotive contracts, Cleveland-Cliffs Inc. is intensely focused on its internal cost structure. Managing the cost of goods sold is just as vital as the selling price, as it determines the margin you capture on every ton shipped. The company is actively targeting steel unit cost reductions of approximately $50 per net ton compared to 2024 levels, a target that was maintained after Q3. This focus on efficiency helps support attractive pricing for customers while improving profitability. Here's a quick look at the cost and pricing targets in context:

If onboarding takes 14+ days, churn risk rises, and similarly, if cost discipline slips, the ability to hold that $1,032/ton price point becomes much harder. Finance: draft 13-week cash view by Friday.