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The American steel company Cleveland-Cliffs has announced the suspension of operations at one of its plants and the layoff of about 600 employees due to insufficient demand for steel used in automotive manufacturing.

Cleveland-Cliffs stated that this summer it will partially suspend operations at its facility in Dearborn, Michigan, and lay off approximately 600 employees due to the 'current reality of weak automotive production in the U.S.'

The firm plans to temporarily halt operations at its ladle furnace, oxygen converter melt shop, and closed pouring shop in Dearborn. The layoffs will take effect on July 15.

'These measures will allow the company to operate more efficiently and competitively under current market conditions,' Cleveland-Cliffs stated. 'We believe that when President Trump's policies are fully implemented and automotive production returns to the U.S., we will be able to resume steel production in Dearborn.'

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Cleveland-Cliffs reported that by mid-July, it expects the full resumption of operations at the Cleveland Works C6 ladle furnace after its suspension last year. It added that the finishing plants at Dearborn Works, including the closed cold rolling mill and continuous galvanizing, will continue to operate and ensure work for another 550 employees.

The layoff notice in Michigan is expected to come after Cleveland-Cliffs announced the layoff of 630 employees in Minnesota due to the suspension of its mines in Minorca and part of the mining operations in Hibbing. These layoffs will begin in May.

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A letter from Cleveland-Cliffs' Chief Human Resources and Employment Officer Robert H. Fisher, received by the American television channel WDIO ABC, explains that the company anticipates temporary layoffs. 'We cannot predict their duration, which may exceed six months,' the letter states.

The letter also notes a decrease in domestic steel market demand in 2024 as a reason for this move due to accumulated excessive iron ore pellet inventories.

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Cleveland-Cliffs' stock prices have fallen by more than 13% over the past month, but the decline since the beginning of the year is only 2.7%. As of Thursday mid-day, their value has increased by more than 2%.