Cleveland-Cliffs deal gives POSCO options

Last Friday's confirmation by POSCO Holdings, the listed arm of South Korea's largest steelmaker POSCO, that it has concluded a strategic partnership agreement with Cleveland-Cliffs Inc, purportedly North America's largest flat-rolled steel producer, shows that the Korean mill is giving itself options in an increasingly complicated steel-trade environment in the United States.

That POSCO is also reportedly considering buying a 20% stake in the Ohio-based steelmaker – the second-largest U.S. mill in terms of crude steel production after Nucor Corp – suggests it is also prepared to spend heavily to build its U.S. market share. Cleveland-Cliffs had revealed during its October 20 earnings announcement