NUE, X, or CLF: Which Is the Best Infrastructure Bill Stock to Buy?
Is There More Upside Left in CLF and U.S. Steel (X) Stock?
CLF Misses Q2 Earnings Estimates: Is the Stock a Buy or Sell Now?
CLF Stock Is Popular on WallStreetBets, Solid Pick for Investors
CLF Versus CLNE: Which Is the Best Reddit Stock to Buy Now?
CLF Stock Forecast: How High Can It Go Amid Reddit Short Squeeze?
Analysts Say Hold on Cleveland-Cliffs Stock, Reddit Investors Say Buy
How Cleveland-Cliffs CEO Lourenco Goncalves Made His Millions
Why Rio Tinto has key advantages over its peers
Rio is the largest owner and operator of autonomous—driverless—trucks in the world. These initiatives are part of Rio’s “Mine of the Future” program.
CLF Stock Is a Good Buy as the U.S. Steel Cycle Nears Its Peak
Why U.S. Steel and Cleveland-Cliffs Upgraded Their Earnings Guidance
Cleveland Cliffs (CLF) Stock Is a Buy for Investors on the Pullback
Cliffs, China’s Iron Ore Demand, and Rising Steel Inventories
Since China consumes more than 70% of seaborne-traded iron ore (COMT), it’s important to track its demand patterns to get a cue for prices.
How US Steel Production Can Support Cleveland-Cliffs’ Volumes in 2018
According to the World Steel Association, 6.7 million tons of crude steel were produced in the US in November 2017 compared to 7.0 million tons in October 2017.
Must-know: Is the share buyback the right thing to do?
Cliffs Natural Resources’ (CLF) new management changed the terms of its debt agreement to repurchase the company’s shares. The shares are worth up to $200 million.
Why Cliffs Raised Guidance for US Volumes
US iron ore (or USIO) is the main driver for Cleveland-Cliffs’s (CLF) top and bottom lines.
Why did Blue Ridge Capital buy Blackberry shares in 3Q 2013?
The Canada-based mobile handset maker Blackberry Ltd. is a 0.22% position in Blue Ridge’s 3Q 2013 portfolio.
Analysts on Iron Ore: How Much More Downside?
Analysts have been expecting a downturn in iron ore. Analysts upgraded their short-to-medium-term forecasts, but they’re still not positive about long-term fundamentals.
AK Steel Could Face Challenges in Meeting Its Goals
AK Steel is working towards stable margins throughout the business cycle. AK Steel has deliberately lowered its exposure to spot markets (X) (CLF).
How China’s Credit Growth Could Progress in 2018
Aggregate financing in China (MCHI) came in at 1.6 trillion yuan in November 2017.
China’s Credit Growth Metrics Also Worsen in April
China’s credit growth clearly has been weaker than expected, especially given the recent easing measures adopted by the government.
Your Key Steel Events to Follow This Week
China’s October fixed asset investment, real estate investment, and industrial production data are all expected to be released on November 14.
Will President Trump’s Pressure Tactics Work Out?
In March 2018, President Donald Trump imposed a tariff of 25% on steel imports. What’s happened since?
Why BHP focuses on productivity
Under equipment, the focus is on increasing availability, utilization, and rate. A 6% increase in utilization helped achieve a 9% increase in group production in FY14.
How US Steel Demand Drivers Look for the Rest of 2017
The US steel demand is the major driver behind steel companies’ (SLX) volumes and prices. Since these companies are Cliffs Natural Resources’ (CLF) main customers, it’s important to track the data.
Why Investors Are Frugal in Valuing Steel Stocks
Since investors have been frugal in valuing steel stocks, steel companies have looked at buybacks to shore up their stock prices.
What Weighed down AK Steel’s 3Q17 Performance?
AK Steel (AKS) reported adjusted EBITDA of $69.2 million in 3Q17, compared with $142 million in 2Q17 and $157 million in 3Q16.
How does Chinese credit easing help iron ore names?
The immediate impact of Chinese credit easing was seen as China’s iron ore and rebar futures posted their strongest gains in three weeks.
Trump’s Tariffs: More Countries Investigate China
Fearing an import deflection following the Section 232 tariffs in the United States, several regions are contemplating tariffs on Chinese steel products.
China’s industrial output growth slows in November
FAI is a good indicator of how much investment occurs in a country or region. It’s a closely watched indicator of construction activity in China.
Can China’s Steel Prices Sustain the Highs of 2016?
Among the most dominant factors driving the recent iron ore price rally are higher steel production and the rise in steel prices in China.
China’s Crude Steel Production Impacts Iron Ore Miners Like Vale
Since 98% of mined iron ore goes into making steel, it’s important to track steel production. China consumes two-thirds of seaborne iron ore.
Has AK Steel Stock Bottomed Out?
AK Steel (AKS) is having a terrible year. Based on June 29 closing prices, the stock has lost 23.3% so far.
How Do Analysts Rate Rio Tinto?
Citigroup (C) upgraded Rio Tinto’s (RIO) rating from “sell” to “neutral” on June 6, 2016. The broker also raised the target price for the stock from 20 pounds to 21 pounds.
Is the Party Over for US Steel Stocks?
Analysts polled by Thomson Reuters expect AK Steel to post an adjusted EBITDA of $520 million in 2019.
Japanese iron ore imports were flat year-over-year in 2014
Japan accounts for 10%–13% of the seaborne market, so Japanese iron ore imports are another good indicator of demand.
Can U.S. Steel’s Asset Revitalization Plan Spark Its Stock?
U.S. Steel (X) expects its slab production capacity to increase by 1.0 million tons by 2020 from the current level of 10.0 million tons.
Why is the market reacting?
Market analysts have started turning bearish on Cliffs Natural Resources (CLF). There are many downgrades. The target price has been revised down in recent weeks.
Why the demerger of non-core assets makes sense for BHP
BHP had been contemplating whether to sell the non-core assets or go for a demerger. Finally, the company decided in favor of a demerger on August 15. The proposed company will likely have assets in the range of $12–$20 billion.
Factors That Could Cause an Upside to CLF’s Free Cash Flow in 2017
Cleveland-Cliffs’ management noted during its 4Q16 earnings call that it is expecting to generate FCF of $550 million in 2017.
Key Indicators US Steel Investors Should Track in 3Q17
Steel stocks have been consolidating for the last few trading sessions. But so far, they’re having a tepid year.
What Could Lead to Further Upgrades for Cliffs Natural Resources?
The average target price for CLF is $3.4 compared to its current market price of $4.9. The target price still implies a downside potential of 30%.
Why China Is Finding It Difficult to Export Its Steel Woes
China’s steel and aluminum overcapacity has earned it the ire of several countries.
Four Reasons U.S. Steel Corporation Looks Like a Decent Buy
U.S. Steel Corporation could see an incremental rise of 1.5 million tons of steel shipments next year.
Analysts Have Been Downgrading U.S. Steel Recently
U.S. Steel carries a mean consensus price target $42.43, which represents a 45.2% upside over its October 9 closing price.
New Probe Shows Fault Line in Trump’s Tariffs
After the imposition of Section 232 steel and aluminum tariffs last year, several observers warned that we could see a spike in downstream imports.
Why Vale’s Iron Ore Margins Should Remain Supported
In this series, we’ll see how Vale is planning to deal with the current volatile commodity price environment.
Outlook for Chinese Steel: Implications for US Steel
China is the world’s largest steel consumer, steel producer, and steel exporter. It dominates the global steel markets probably like no other country ever has.
What to Look for in Cliffs Natural Resources’s 1Q17 Results
In this series, we’ll see what investors could expect from Cliffs Natural Resources’s (CLF) 1Q17 results, which are scheduled to be released on April 27, 2017. CLF underperformed the other global iron ore miners in 1Q17.
Why did the Cliff’s share price rally?
Iron ore prices are down 19% year-over-year (or YoY) and coal prices are down 30% YoY—volumes were also down YoY, but the stock rallied 7% in a single trading session the next day of the earnings call and up 3% the subsequent trading day.
What Could Do the Trick for US Steel Prices
Bank of America Merrill Lynch has raised its 2017 hot rolled coil steel forecast to $700 per ton. The brokerage also upgraded U.S. Steel (X) from a “neutral” to “buy.”
These Factors Could Drive Cleveland-Cliffs’ Valuation in 2018
Among the US steel and iron ore peers, Nucor (NUE) is trading at the highest forward multiple of 7.7x.
BHP Billiton Downgraded by JPMorgan, Added to Goldman’s Buy List
JPMorgan Chase analyst Lyndon Fagan downgraded BHP Billiton (BHP) from an “overweight” to a “neutral” rating on December 6.
Steel Companies Tone Down Expectations after Steel Price Rout
U.S. Steel (X) lowered its 2018 EBITDA guidance due to the recent correction in spot steel prices.
Must-know: Why is Chinese construction activity cooling down?
About 98% of mined iron ore finds its way into steel production, and construction accounts for 50% of the steel consumed. So it’s very important to track the direction of construction activity
Analysts Are Coming Around to Cleveland-Cliffs, Stock Upgraded
Today, J.P. Morgan (JPM) upgraded Cleveland-Cliffs (CLF) stock from “neutral” to “overweight.” Here’s why.
These Factors Could Impact CLF’s US Volumes in 3Q17 and Beyond
In 2Q17, Cleveland-Cliffs (CLF) achieved 4% growth year-over-year in US volumes to 4.3 million tons.
Must-know: Why Brazilian iron ore exports fell 9% in August
Brazilian exports show how much volume is shipped out of Brazilian ports to China and the rest of the world. Along with exports from Port Hedland, Australia, this is an important supply side indicator.
Iron Ore Pricing Pressures Likely to Persist
Almost all of the iron ore miners are cutting costs, which is driving the cost curve down. This will put additional pressure on prices.
China’s Steel Prices Might Have Started Giving Up: More Downside?
One of the most dominant factors driving iron ore’s price rally is rising steel production and the resulting increase in steel prices in China (FXI).
China Moves from Manufacturing to Consumption: Impact on Iron Ore
Over the past few months, we’ve seen that China (MCHI) (ASHR) is transitioning from a manufacturing-based to consumption-based economy.
China’s Steel Production Outlook Pressures Iron Ore Prices
According to the China Iron and Steel Association, China’s 2015 crude steel output could decline by as much as 2%. This estimate is lower than CISA’s March estimate of a 1.1% decline.
An overview of Vale—the world’s largest iron ore company
Vale (VALE) is a Brazilian multinational diversified metals and mining company. It’s the world’s largest producer of iron ore and iron ore pellets.
Why AK Steel Isn’t in Favor with Brokerages
AK Steel’s mean consensus target price of $2.92 represents a potential upside of 11.9% over its closing price on March 8.
Why CLF Downgraded Its Volumes Guidance for the US Segment
Cleveland-Cliffs’ reduced its sales and production volume guidance for 2017 from 19.0 million tons to 18.5 million tons.
Is Cliffs Bidding Farewell to Seaborne Iron Ore Volatility?
Cleveland-Cliffs’ (CLF) new management has always been keen on exiting the volatile seaborne iron ore business as soon as possible.
AK Steel’s Outlook Looks Gloomy after Earnings Miss
AK Steel (AKS) reported its third-quarter earnings on October 25 after the markets closed. The company reported revenues of $1.74 billion.
What to Expect from Cleveland-Cliffs’ 3Q17 Earnings
Cleveland-Cliffs (CLF) is scheduled to release its 3Q17 results before the US market opens on October 20. In this series, we’ll look ahead to CLF’s earnings and management call.
Blue Ridge Capital bought Cliffs Natural Resources shares in 3Q13
International mining and natural resources company Cliffs Natural Resources Inc. (CLF) occupies a 0.35% position in Blue Ridge’s 3Q 2013 portfolio.
Cleveland-Cliffs’ Q2 2018 Earnings: What to Look Forward To
Cleveland-Cliffs (CLF) will release its second-quarter results before the market opens on July 20.
Steel Companies’ Third-Quarter Guidance: Key Takeaways
During the second-quarter earnings call, U.S. Steel Corporation raised its 2018 EBITDA guidance to $1.85 billion–$1.90 billion.
Cleveland-Cliffs Stock Near Its 52-Week High—Looking ahead to 4Q
Cleveland-Cliffs (CLF) stock is trading at $12.80 per share. Its year-to-date gain through October 1 is 77.0%.
Why Is Cliffs Going to Idle Iron Ore Pellet Production?
Cliffs announced that it is going to temporarily idle its iron ore pellet production at its Northshore Mining operation in Minnesota by December 1, 2015.
AK Steel: Does the Rally Have Any Steam Left?
AK Steel (AKS) has gained more than 15% from its 2018 lows. However, AK Steel is still down 17.3% YTD (year-to-date).
U.S. Steel Might Need to Do Some Firefighting Today
U.S. Steel Corporation (X) released its 1Q18 earnings results yesterday. While the company’s earnings beat analysts’ estimates, its 2018 guidance seems to have spooked markets.
Why U.S. Steel Investors Should Brace for Higher Input Costs
U.S. Steel Corporation (X) produces steel in blast furnaces and uses coking coal and iron ore (CLF) as raw material.
It’s Hard to Be Positive on Long-Term Iron Ore Price Fundamentals
Vale SA will cut the high-cost iron ore production from its Southern and Southeastern systems by 25 million–30 million tons per year. Its 2015 iron ore guidance production is unchanged at 340 million tons.
Understanding S11D’s Impact on Vale’s Earnings Estimates for 2017
Vale’s total volumes should see a significant boost from iron ore volumes as its S11D project starts commercial production.
Inside Cliffs Natural Resources’ Solid 4Q16 Earnings, Big Stock Surge
Cliffs Natural Resources’ results for 4Q16 were hugely positive and beat the market expectations by a wide margin.
Should Vale’s Valuation Be Re-Rated?
Since last year, Vale has shown a sincere desire to be more transparent and predictable.
Multiyear Low US Steel Prices are Not Helping Matters for Cliffs
Most of Cliffs Natural Resources’ revenues and earnings are tied to the US steel industry. Steel prices are also a component of Cliffs’ pricing formula.
What is Driving the Valuation for Iron Ore Miners?
Valuation multiple The EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is a widely used relative valuation multiple for capital-intensive industries such as metals and mining. It takes into account a company’s capital structure. By using this multiple, we can compare companies’ valuations. Miners’ EV-to-EBITDA Vale (VALE) has a forward EV-to-EBITDA multiple […]
Understanding China’s Monthly Record in Steel Production
In April, China’s steel production surpassed the previous monthly record of 72 million achieved in March 2017 by producing 72.78 million tons.
Cliffs’ US Realized Prices Have Ample Upside in 2017. Here’s Why
Cliffs Natural Resources’ average realized prices were 0.5% lower YoY in 4Q16 at $73.8 per ton.
How Will Steel Prices in the US Impact Cliffs’ Realized Revenues?
US steel has seen a change in fortunes this year. Trump’s win has been a positive catalyst for the industry.
Why the Outlook on Iron Ore Is Still Negative
Major iron ore producers are further reducing costs to weather the current market downturn.
Why Did Jefferies Increase Its Target Price for Cleveland-Cliffs?
Today, Jefferies analyst Seth Rosenelf raised the target price for Cleveland-Cliffs (CLF) from $11 to $13 while maintaining a “buy” rating on the stock.
Revisiting the Case: How Does Cleveland-Cliffs Look Now?
Cleveland-Cliffs (CLF) has witnessed a turnaround of sorts in the last four years.
Cleveland-Cliffs’s Asia-Pacific Division Remained Weaker
Cleveland-Cliffs (CLF) has direct exposure to the seaborne iron ore trade through its APIO (Asia-Pacific Iron Ore) unit.
CLF Pops as US Slaps Tariffs on Chinese Steel Shipped via Vietnam
US steel stocks (SLX) and Cleveland-Cliffs (CLF) have been on a roller coaster ride that refuses to calm down.
Cleveland-Cliffs Stock Rises on Strong Earnings, Upbeat Guidance
Cleveland-Cliffs (CLF) released its Q2 earnings on July 20. Its EPS was $0.76, beating the consensus estimate of $0.53 by 43.4%.
Metals and Mining Stocks Gain amid Toned-Down Tariffs
As of 1:00 PM EDT on September 18, Freeport-McMoRan (FCX) and Alcoa (AA) have risen 2.9% and 1.1%, respectively.
Dalio and Other Money Managers Are Turning to Cleveland-Cliffs
In a significant development for Cleveland Cliffs (CLF), billionaire investor Ray Dalio purchased a stake in CLF stock in the first quarter.
Cliffs Natural Resources’ US Volumes: Will There Be a Surprise?
On June 9, 2016, Cliffs announced that it will be reopening its United Taconite plant in northeastern Minnesota two months early due to a contract with U.S. Steel Canada.
Is a Valuation Rerating in the Cards for Vale Stock?
Vale’s CFO, Luciano Siani Pires, said during Vale Day on December 6 that the company deserves a rerating of its valuation.
U.S. Steel Corporation: Its Earnings Beat Might Impress You
U.S. Steel Corporation (X) released its second-quarter earnings on August 1 after the market closed. Its revenues were $3.6 billion.
Are US Steel Stocks at a Tipping Point?
US steel prices have held their ground despite several analysts expressing concern over the sustainability of high steel prices.
U.S. Steel: Analysts Disagree on the Effects of Tariffs
Previously, we looked at AK Steel’s (AKS) ratings and target prices.
Inside Cliff’s Earnings in 2017: What Will Drive Analysts’ Earnings Estimates?
In the past year, analysts have raised their revenue projections for Cliffs from ~$1.8 billion to ~$2.0 billion for the year.
Will Iron Ore Prices Benefit from China’s Credit Growth Prospects?
China’s aggregate financing stood at ~3.7 trillion Chinese yuan in January 2017, as compared to 1.6 trillion yuan in December 2016.