Cleveland-Cliffs Inc

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.

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.

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.

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.

US iron ore (or USIO) is the main driver for Cleveland-Cliffs’s (CLF) top and bottom lines.

The Canada-based mobile handset maker Blackberry Ltd. is a 0.22% position in Blue Ridge’s 3Q 2013 portfolio.

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 is working towards stable margins throughout the business cycle. AK Steel has deliberately lowered its exposure to spot markets (X) (CLF).

Aggregate financing in China (MCHI) came in at 1.6 trillion yuan in November 2017.

China’s credit growth clearly has been weaker than expected, especially given the recent easing measures adopted by the government.

China’s October fixed asset investment, real estate investment, and industrial production data are all expected to be released on November 14.

In March 2018, President Donald Trump imposed a tariff of 25% on steel imports. What’s happened since?

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.

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.

Since investors have been frugal in valuing steel stocks, steel companies have looked at buybacks to shore up their stock prices.

AK Steel (AKS) reported adjusted EBITDA of $69.2 million in 3Q17, compared with $142 million in 2Q17 and $157 million in 3Q16.

The immediate impact of Chinese credit easing was seen as China’s iron ore and rebar futures posted their strongest gains in three weeks.

Fearing an import deflection following the Section 232 tariffs in the United States, several regions are contemplating tariffs on Chinese steel products.

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.

Among the most dominant factors driving the recent iron ore price rally are higher steel production and the rise in steel prices in China.

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.

AK Steel (AKS) is having a terrible year. Based on June 29 closing prices, the stock has lost 23.3% so far.

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.

Analysts polled by Thomson Reuters expect AK Steel to post an adjusted EBITDA of $520 million in 2019.

Japan accounts for 10%–13% of the seaborne market, so Japanese iron ore imports are another good indicator of demand.

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.

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.

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.

Cleveland-Cliffs’ management noted during its 4Q16 earnings call that it is expecting to generate FCF of $550 million in 2017.

Steel stocks have been consolidating for the last few trading sessions. But so far, they’re having a tepid year.

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%.

China’s steel and aluminum overcapacity has earned it the ire of several countries.

U.S. Steel Corporation could see an incremental rise of 1.5 million tons of steel shipments next year.

U.S. Steel carries a mean consensus price target $42.43, which represents a 45.2% upside over its October 9 closing price.

After the imposition of Section 232 steel and aluminum tariffs last year, several observers warned that we could see a spike in downstream imports.

In this series, we’ll see how Vale is planning to deal with the current volatile commodity price environment.

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.

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.

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.

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.”

Among the US steel and iron ore peers, Nucor (NUE) is trading at the highest forward multiple of 7.7x.

JPMorgan Chase analyst Lyndon Fagan downgraded BHP Billiton (BHP) from an “overweight” to a “neutral” rating on December 6.

U.S. Steel (X) lowered its 2018 EBITDA guidance due to the recent correction in spot steel prices.

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

Today, J.P. Morgan (JPM) upgraded Cleveland-Cliffs (CLF) stock from “neutral” to “overweight.” Here’s why.

In 2Q17, Cleveland-Cliffs (CLF) achieved 4% growth year-over-year in US volumes to 4.3 million tons.

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.

Almost all of the iron ore miners are cutting costs, which is driving the cost curve down. This will put additional pressure on prices.

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).

Over the past few months, we’ve seen that China (MCHI) (ASHR) is transitioning from a manufacturing-based to consumption-based economy.

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.

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.

AK Steel’s mean consensus target price of $2.92 represents a potential upside of 11.9% over its closing price on March 8.

Cleveland-Cliffs’ reduced its sales and production volume guidance for 2017 from 19.0 million tons to 18.5 million tons.

Cleveland-Cliffs’ (CLF) new management has always been keen on exiting the volatile seaborne iron ore business as soon as possible.

AK Steel (AKS) reported its third-quarter earnings on October 25 after the markets closed. The company reported revenues of $1.74 billion.

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.

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 (CLF) will release its second-quarter results before the market opens on July 20.

During the second-quarter earnings call, U.S. Steel Corporation raised its 2018 EBITDA guidance to $1.85 billion–$1.90 billion.

Cleveland-Cliffs (CLF) stock is trading at $12.80 per share. Its year-to-date gain through October 1 is 77.0%.

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 (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 Corporation (X) released its 1Q18 earnings results yesterday. While the company’s earnings beat analysts’ estimates, its 2018 guidance seems to have spooked markets.

U.S. Steel Corporation (X) produces steel in blast furnaces and uses coking coal and iron ore (CLF) as raw material.

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.

Vale’s total volumes should see a significant boost from iron ore volumes as its S11D project starts commercial production.

Cliffs Natural Resources’ results for 4Q16 were hugely positive and beat the market expectations by a wide margin.

Since last year, Vale has shown a sincere desire to be more transparent and predictable.

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.

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 […]

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 Natural Resources’ average realized prices were 0.5% lower YoY in 4Q16 at $73.8 per ton.

US steel has seen a change in fortunes this year. Trump’s win has been a positive catalyst for the industry.

Major iron ore producers are further reducing costs to weather the current market downturn.

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.

Cleveland-Cliffs (CLF) has witnessed a turnaround of sorts in the last four years.

Cleveland-Cliffs (CLF) has direct exposure to the seaborne iron ore trade through its APIO (Asia-Pacific Iron Ore) unit.

US steel stocks (SLX) and Cleveland-Cliffs (CLF) have been on a roller coaster ride that refuses to calm down.

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%.

As of 1:00 PM EDT on September 18, Freeport-McMoRan (FCX) and Alcoa (AA) have risen 2.9% and 1.1%, respectively.

In a significant development for Cleveland Cliffs (CLF), billionaire investor Ray Dalio purchased a stake in CLF stock in the first quarter.

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.

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 (X) released its second-quarter earnings on August 1 after the market closed. Its revenues were $3.6 billion.

US steel prices have held their ground despite several analysts expressing concern over the sustainability of high steel prices.

Previously, we looked at AK Steel’s (AKS) ratings and target prices.

In the past year, analysts have raised their revenue projections for Cliffs from ~$1.8 billion to ~$2.0 billion for the year.

China’s aggregate financing stood at ~3.7 trillion Chinese yuan in January 2017, as compared to 1.6 trillion yuan in December 2016.