USA: Cleveland-Cliffs officially announced the closure of its Steelton plant in January, although operations ceased in mid-2025. The access track is now closed, and more than 500 employees have been laid off. The company attributed the decision to low prices and weak demand in the sector despite a major infrastructure support programme.
The Steelton facility was established by the Pennsylvania Railroad in 1866. The last major upgrade took place in 2013 with the installation of a new rail hardening furnace. Annual capacity stood at 300,000 tonnes of steel rail products.
Rail production at the Steelton-based Cleveland-Cliffs plant. Source: Average_EMD_Enjoyer/Reddit
The US is now left with two rail producers. One is Steel Dynamics’ Columbia City plant with capacity for 300,000 tonnes of rail a year. The other is Rocky Mountain Steel Mills in Pueblo, Colorado, formerly part of Russia’s EVRAZ and accounting for 48% of the domestic rail market as of 2021. EVRAZ sold its North American assets to investment firm Atlas in mid-2025 due to US government sanctions. The new owner rebranded the steelmaking division as Orion Steel. Shortly after the acquisition, it announced a 61% price increase for rail supplied to Union Pacific and BNSF, prompting both operators to reject the new terms. The parties are now in litigation.
Rails imports also play a significant role in the US. WITS data shows 124,000 tonnes imported in 2024 valued at $140 mln, mainly from Japan, the Czech Republic and China. Union Pacific and BNSF note that overseas purchases are hampered by long lead times as well as import tariffs and anti-dumping measures.
