Iron & Steel Mills NAICS 331110

Mar 23, 2026 - Producer Costs Rising

• The surge in energy prices due to the conflict in the Middle East has raised the fundamental cost structure for iron ore producers, according to an analysis by UBS, IndexBox reports. Rising energy costs are reshaping iron ore markets, with direct implications for both iron and steel mills. Higher oil prices are increasing shipping and production costs for iron ore, which raises the overall cost of raw materials used by steel producers. As a result, iron ore prices are stabilizing at higher levels, even amid weaker demand and elevated inventories. For steel mills, this means persistent input cost pressure, as elevated energy expenses push up the cost of iron ore supply globally. The steepening of the industry cost curve also limits low-cost supply, reducing price volatility but keeping prices supported. Additionally, supply constraints among higher-cost or distant producers may tighten availability, potentially affecting sourcing strategies for mills.
• US steel manufacturer Cleveland-Cliffs posted higher third-quarter revenue and said demand for steel produced in the US was rising due to the Trump administration’s tariffs, The Wall Street Journal reports. The Cleveland-based steelmaker posted sales of $4.73 billion in its latest quarter, up from $4.57 billion the year before, a 4.1% increase. The company credited the 50% tariff on imported steel for helping it sign new supply deals with all major US automotive original equipment manufacturers, according to WSJ. In response to the Trump administration’s moves to boost domestic production of rare earth metals, Cleveland-Cliffs CEO told WSJ that the company is looking to expand its presence in domestic rare-earth metal production and is examining mining sites in Michigan and Minnesota that show key indicators of rare-earth minerals.

• In September, domestic steel prices fell to their lowest levels since February giving up earlier tariff-driven gains, OilPrice.com reports. Weak demand from the construction sector, short mill lead times, and volatile durable goods orders are putting downward pressure on prices, including for hot-rolled steel coil, which in early September saw its lowest price since February. The Raw Steels Monthly Metals Index (MMI), which tracks steel prices, fell nearly 1% from August to September. In the first quarter, prices jumped $241 per short ton following tariff announcements by the Trump administration. However, since peaking in March, prices have fallen $109 to stand at $818 per short ton. Prices for cold-rolled coil and hot-dipped galvanized steel are also trending downward. While tariffs have provided support for domestic steel prices, falling demand from the construction and manufacturing sectors is proving more of a drag on prices.
• Producer prices for iron and steel mills rose 3.9% in November compared to a year ago, after falling 6.7% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices rebounded sharply in the first half of 2025 as the Trump administration’s aggressive tariff agenda strengthened domestic demand and provided a boost to steel makers’ order books. However, producer prices began easing later in the year. Employment by the industry grew 1.5% year over year in November, while the average wage at primary metals manufacturers dipped 0.9% YoY in December to $29.41per hour, down from its high in July, BLS data show.