Cleveland Cliffs Inc (CLF)

[sts66]

I doubt steel companies would be interested in investing in the plant - could put them in a lose-lose situation should the price of steel and ore go down together - only way they could benefit is getting price discounts, which might hurt CLF earnings, depends on cost of discounts vs. cost of financing. Generally speaking, users of commodities outsource the production of them so they can cut the producers loose w/o having to pay overhead during lean times - same reason many employers prefer contract workers instead of permanent hires.