I agree with what you say. I would stay away from CLF if I owned AKS. Why? Because they are too close to the same industry (Commodities and iron/steel). Diversification is key when picking stocks for a portfolio. Never put too much money into one sector because if that sector goes south, so does your money. I learned this the hard way by being heavy in AKS and FCX. Both are in the business of producing a commodity.
It's ok to have more than one stock in a sector, just don't allocate a large portion of your money if you do. Getting burned is the best lesson there is.
It all depends on what price you bought it at. It appears you bought it at a high price. With cyclical stocks you have to buy low and sell at the peak of the cycle. Not easy to do, that is why these types of stocks are very risky. I have held for several years as well and have a $3.68 average cost and I still think I bought kind of high even though I am up a little bit. This stock is a roller coaster ride, that's for sure.
Sorry that you have lost money on this investment. Perhaps you could sell some shares and take the tax loss and reinvest some of the proceeds into less risky stocks or mutual funds while still holding some shares. If you have a longer time horizon, it might be a good idea to get into stocks or funds that pay dividends so you can reinvest them over time. Just something to think about. Ultimately the decision is yours.