Market Vectors® Steel ETF
Seaborne Iron Ore Prices Look Firm, Supporting Cliffs
For the first time in two years, in November, iron ore prices crossed the $80 per ton level, and YTD gains for the steel-making commodity have reached 82%.
CLF Cautions: How Are Analysts Leading after the Recent Run-Up?
Cliff’s Natural Resources has long-term contracts with US steelmakers and is thus affected more by what’s happening in US steel than in seaborne iron ore.
Why the Outlook for US Steel Prices Is Bright beyond 4Q17
While US steel prices rose to a high of $660 per ton in March 2017, they fell to $580 per ton in June.
Steel Companies Expect Strong Demand in 2018
Some analysts expect US steel demand to soften. The Section 232 tariffs have led to higher steel prices in the United States.
How Do Falling US Steel Imports Impact Cliffs’ US Volumes?
Cliffs CEO Laurenco Goncalves mentioned during the Goldman Sachs conference on November 16 that the percentage of domestic steel on the market is ~70%.
What Cliffs Natural Resources’ Debt Tender Offer Means
On July 31, 2017, Cliffs Natural Resources (CLF) announced a tender offer for a $575.0 million aggregate principal amount of its 5.75% guaranteed notes due in 2025.
What to Expect from Cliffs Natural Resources’ 2Q17 Earnings
In this series, we’ll see what investors could expect from Cliffs Natural Resources’ (CLF) 2Q17 earnings report. CLF stock has gained 23% in the last 15 trading days.
Why Are Vale Analysts Are Feeling Upbeat?
The word on Wall Street Among the analysts that track Vale (VALE), 30.0% have given the company “buy” recommendations, and 17.0% have given it “sell” recommendations. Vale’s target price is $9.67, which implies a downside potential of 16%. In the past year, its target price has risen 111%, with its share price staying firm due to […]
Are Analysts Getting Wary of the Run-Up in US Steel and Cliffs?
After Trump’s election win, most analysts are turning optimistic on the US steel sector, given his stance on protectionism and infrastructure focus.
These Factors Could Affect CLF’s Valuation
Among the US steel players (SLX), only Cliffs and U.S. Steel are trading at a discount to their respective last five-year average multiples.
Cliffs Natural Resources: US Steel Imports Outlook
Higher US steel imports have negatively impacted Cliffs Natural Resources’ (CLF) customer orderbooks and pricing.
What Could Drive Cliffs’s Valuation in 2017?
Valuation multiples Valuation multiples are key metrics that investors should consider carefully. To compare a company’s valuation with its closest peers’, there are several valuation metrics you can use. For companies in cyclical industries such as steel (SLX) and mining, the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple is the preferred valuation metric. […]
Does 2018 Bode Well for US Steel Prices?
Steel prices are the major driver of steelmakers’ earnings and revenues. So it’s important for steel investors and Cleveland-Cliffs (CLF) investors to track the trend in steel prices.
Key Indicators for Cliffs Natural Resources Investors
Cliffs Natural Resources (CLF) was trading at $9.24 on December 1, 2016, which represents a 70% rise in the last one month alone.
Divergence in steel multiples and share prices spell positive shipping outlook
Valuations can often tell investors the outlook of equities in the near future. Although value investors often look for valuations that are low, high valuations can often signal better times ahead. This is especially true for cyclical companies, such as steel producers and shipping companies, as has been mentioned by Peter Lynch in his famous […]
Why China’s Real Estate Outlook Matters to Iron Ore Miners
According to its National Bureau of Statistics, China’s real estate sector grew 7.7% in 4Q16, as compared to 8.8% in 3Q16.
What’s Driving Cliffs Natural Resources’ US Volumes?
Cliffs has already increased its production and sales guidance for 2016. Its sales guidance now stands at 18.0 million tons, a rise of 0.50 million tons.
Is Cliffs’ Debt Maturity Wall Falling Apart?
Cliffs Natural Resources’ (CLF) has announced that it will offer 55 million shares at a public offering price of $10.75 per share.
Analysts’ Optimism for US Steel Sector Gets Cliffs an Upgrade
Better fortunes for the US steel sector bode well for Cliffs Natural Resources (CLF), the only North American pure play iron ore pellet supplier.
Cleveland Cliffs: Realized Price Expectations in 2019
Cleveland-Cliffs expects US (SPY) (IVV) realized prices to be $102.0–$107.0 per ton for 2019.
How Can Cleveland-Cliffs Start Dividend Distributions Again?
Cleveland-Cliffs’s (CLF) CFO Tim Flanagan mentioned that the company is expected to generate $400 million of free cash flow in the second half of 2018.
FOMC on the Economic Situation: A Strong US Economy
In the March meeting minutes, the FOMC staff review of the economy was stronger than the review presented at the January meeting.
Which Countries and Industries Could Be Affected by the Tariffs?
Canada, the European Union, South Korea, Mexico, and Brazil are the largest exporters of steel and aluminum to the United States.
Why Economist Argue That Tariffs Are Bad for the Economy
The recently proposed import tariffs on steel and aluminum imports by US President Donald Trump are an effort to protect the interests of US manufacturers.
How US Steel Import Tariffs Could Affect Cleveland-Cliffs in 2018
US steelmakers (SLX) were facing an onslaught of increasing steel imports into the US, which impacted their capacity utilization and pricing power negatively.
Large Speculators’ Positions on the S&P 500 Index Last Week
The S&P 500 Index’s large speculators increased the number of net bullish positions for the first time in five weeks.
Cleveland-Cliffs Stock Rises on Tariff Recommendations
On February 16, 2018, the US Department of Commerce released its recommendations for the Section 232 probe into steel and aluminum imports.
What Technical Indicators Say about Cliffs and Peers
Based on its January 12, 2018, closing price, Cleveland-Cliffs is trading ~28% above its 50-day moving average and 15.4% above its 20-day moving average.
Why Analysts Project Lower Net Debt for Cliffs in 2017
Although investors are still concerned about Cleveland-Cliffs’ (CLF) debt, it has come a long way with respect to debt levels.
How Analysts View Cleveland-Cliffs’ Earnings for 2017 and Beyond
In this article, we’ll discuss analysts’ projections for Cleveland-Cliffs (CLF). Investors should note that drivers for CLF are quite different from those of its seaborne peers.
What to Expect from Cleveland-Cliffs’ 4Q17 US Volumes
Cleveland-Cliffs (CLF) achieved US volumes of ~5.9 million tons in 3Q17, an increase of 11% year-over-year (or YoY).
Iron Ore: Could China’s Auto Sales Hit a Rough Patch in 2018?
The China Association of Automobile Manufacturers originally forecast 5.0% growth in total vehicle sales for 2017.
China’s Steel Demand Indicator Slowdown—How Will Iron Ore React?
China’s property sector is one of the most steel-intensive sectors, consuming approximately 50% of overall steel in the country.
Why Analysts Downgraded Cleveland-Cliffs’s Earnings Estimates
The drivers for Cleveland-Cliffs’ (CLF) top and bottom lines are quite different from the miners we’ve discussed in the previous parts of this series such as Rio Tinto (RIO), BHP (BHP), and Vale (VALE).
China’s Auto Sales Might Have a Surprise Impact on Iron Ore
The Chinese automobile industry comes second, after the real estate sector, in consuming the most steel. In this article, we’ll look at the recent developments in this industry to track the associated iron ore demand.
Cleveland-Cliffs: Tracking China’s Steel Demand
China’s total vehicle sales rose 2.0% in October 2017 compared to October 2016.
Will China’s Steel Production Take the Sheen Away from Iron Ore Prices?
The most-traded January rebar contract on the Shanghai Futures Exchange climbed 4.3% to 3,776 yuan per ton.
Is Cleveland-Cliffs’ Weak 4Q17 Outlook Temporary?
Cleveland-Cliffs (CLF) released its 3Q17 results on October 20. CLF reported earnings per share of $0.36, beating the consensus estimate by $0.04.
Factors Driving Analysts’ Forecast of a Drop in CLF’s Net Debt in 2017
According to consensus estimates, CLF’s net debt should fall 42% by the end of 2017 compared to 2016.
Can Cleveland-Cliffs’ Realized Prices in the US See an Uptick in 3Q17?
Cleveland-Cliffs’ (CLF) average realized prices increased 24% year-over-year and 22% quarter-over-quarter to $97 per ton in 2Q17.
Comparing Cleveland-Cliffs’s and US Peers’ Technical Indicators
Stock returns AK Steel (AKS), Nucor (NUE), and Steel Dynamics (STLD) have seen negative returns of 17.2%, 3.0%, and 2.1%, respectively, in the trailing three months. U.S. Steel Corporation (X), ArcelorMittal (MT), and Cleveland-Cliffs (CLF) have returned 14.0%. 15.3%, and 2.4%, respectively. Is Cleveland-Cliffs oversold? Based on its September 29, 2017, closing price, Cleveland-Cliffs is trading […]
How China’s Steel Demand Could Affect Iron Ore Demand
China’s property sector China’s property sector is one of its most steel-hungry sectors, accounting for close to 50% of overall steel demand. Therefore, it is important for steel investors to keep tabs on the sector to gauge the steel demand outlook in China. China’s property sector once again appeared to be under stress in August. […]
The Outlook for US Steel Prices in 4Q17
Steel prices Along with steel production, steel prices are among the most important drivers of US steelmakers’ earnings. Therefore, steel and iron ore investors should track US steel prices (SLX). After being depressed for a long period, US steel prices started their upward march in 2016 after high anti-dumping duties were levied on imported steel. Prices also […]
How Owning the Tilden Mine Fits Into Cleveland-Cliffs’s Strategy
Cleveland-Cliffs now fully owns Tilden On October 2, 2017, Cleveland-Cliffs (CLF) announced its acquisition of U.S. Steel Corporation’s (X) 15% equity interest in the Tilden mine for $105 million. Cleveland-Cliffs already owned the other 85% of the joint venture. This transaction will provide 1.2 million tons of annual pellet production capacity to Cleveland-Cliffs, taking its capacity to ~20 million […]
How Did China’s Auto Sales Trend in August?
China’s automobile industry is the second-largest steel consumer after the real estate sector.
Understanding Changes in Analyst Estimates for CLF
Wall Street analysts covering Cleveland-Cliffs estimate revenues of ~$2.4 billion in 2017. This implies growth of 14.7% year-over-year.
Inside China’s Steel Demand Indicators and Outlook for Iron Ore
To gauge the steel demand outlook in China, it’s important to keep an eye on the property sector.
This Could Drive US Steel Prices Higher (And Benefit CLF)
Steel prices are one of the primary factors that drive US steelmakers’ earnings, and so it’s imperative for investors to track steel prices
Impact on CLF: Will the Trump Administration Listen to US Steelmakers?
The American steel industry has written to President Donald Trump requesting that he restrict steel imports immediately.
These Variables Could Drive Cleveland-Cliffs Higher
After experiencing a great 2016, US steel stocks are having a tepid 2017.
US Steel Prices: The Outlook for Cliffs Natural Resources
Cliffs Natural Resources (CLF) downgraded its EBITDA and net earnings guidance for 2017 due to weaker-than-expected YTD averages of US HRC and seaborne iron ore prices.
Cliffs Natural Resources: What Will Drive Performance after 2Q17?
The 2Q17 earnings season for US-based steel companies is now over. Cliffs Natural Resources (CLF) released its 2Q17 results on July 27, 2017, before the market opened.
What Could Drive Cliffs Natural Resources’ US Volumes in 2H17
US iron ore (or USIO) is the main driver for Cliffs Natural Resources’ (CLF) top and bottom lines. The top line, in turn, is driven by volumes and realized prices.
Key Highlights from Cliffs Natural Resources’ 2Q17 Results
Cliffs Natural Resources (CLF) achieved revenues of $569 million for 2Q17, an increase of 15% year-over-year (or YoY).
Why Cliffs Natural Resources’ Stock Fell despite an Earnings Beat
Cliffs Natural Resources (CLF) released its 2Q17 results on July 27, 2017, before the market opened. Here’s what you need to know.
Can Iron Ore Miners’ Supply Discipline Lead to a Price Upside?
Rio Tinto (RIO) released its operational update for 1H17 on July 18, 2017. Rio’s iron ore shipments fell 6% year-over-year (or YoY) to 77.7 million tons in 2Q17.
China’s Auto Sales Rebounded in June: Gauging Iron Ore’s Impact
Since China’s automobile industry is the second-largest consumer of steel after the real estate sector, it’s important to track its developments.
Jefferies Recommends a ‘Buy’ for CLF—What Do Other Analysts Think?
According to the consensus compiled by Thomson Reuters, 22% of the analysts covering Cliffs Natural Resources (CLF) recommended a “sell” for the stock, 33% recommend a “buy,” and 44% recommend a “hold” for the stock.
Can CLF’s Realized Prices See an Uptick in the US Segment?
Compared to 1Q16, Cliffs Natural Resources’ average realized prices fell 5% year-over-year to $79.30 per ton in 1Q17.
How Analysts View the US Steel Sector and Cliffs Natural Resources
Longbow Research’s analysts expect hot rolled steel coil prices to rise $50–$60 per ton due to an uptick in the downstream steel orders.
How the Trend in US Steel Demand Affects Cliffs Natural Resources
US housing starts totaled ~1.1 million in May against expectations of ~1.2 million, representing a drop of 5.5% year-over-year.
What Expectations Are Cliffs and Its Peers Setting for 2H17?
June 2017 was a relatively good month for US steel stocks (SLX), as they rebounded after May’s selling pressure. Cliffs Natural Resources (CLF) rose 17.5% in June after a 12.4% loss in May.
Why China’s Slowing Auto Demand Hurts Iron Ore
China’s automobile industry is the second-largest steel consumer, after the real estate sector.
What’s Causing Cliffs Stock to Slide?
After seeing a tremendous 404% gain in 2016, Cliffs Natural Resources (CLF) stock has been on a downhill slide in 2017 YTD (year-to-date).
What Is the Word on Wall Street about Vale?
According to Reuters, 55% of Wall Street analysts recommend a “hold” on Vale (VALE), while 36% of the analysts rate it as a “buy.”
How’s the Industry Outlook for Cliffs for the Rest of 2017?
May 2017 was quite a volatile month for Cliffs Natural Resources (CLF) and its peers. Cliffs fell 12.4% in May alone, bringing its year-to-date losses to 30%.
Is Cliffs’s Turnaround Going to Last?
US steel stocks (SLX) have been among the biggest gainers since Donald Trump won the US presidential election.
How Important Is the Green Label for Investors?
The green bond universe includes more than 600 bonds from 24 countries in 23 currencies.
Cliffs Natural Resources: Why CEO Is Upbeat on Trump’s Impact
Cliffs’s CEO Lourenco Goncalves is very positive that the business sentiment will improve under the Trump administration.
Key Highlights from Cliffs Natural Resources’ 4Q16 Results
Cliffs Natural Resources (CLF) reported revenues of $754 million for 4Q16, which represents a rise of 58% YoY.
Why Cliffs Stock Takes Cues from Seaborne Iron Ore Prices
Most of Cliffs’s (CLF) revenues and earnings are tied to its contracts in the US steel market. CLF stock is sensitive to movements in seaborne iron ore prices.
Cliffs Natural Resources: 4Q16 Market Expectations
Market expectations for Cliffs Natural Resources (CLF) are varied. Of the analysts covering CLF stock, two of them have recommended a “buy.”
Cliffs Stock Outperformed Peers in 2016: What about 2017?
With stronger iron ore prices in 2016, iron ore miners have recuperated from some of their losses. Cliffs Natural Resources (CLF) rose an impressive 404.0% in 2016.
How Have Analysts’ Views on Cliffs Changed in the Last Year?
Analyst sentiment Analysts’ recommendations and ratings among the most important market sentiment indicators for investors to look at. Analyst ratings tell you how bullish or bearish analysts are on a particular company or industry. At the extreme, the sentiment could be an indicator of a change in direction. When everyone is bearish and dumping stocks, it […]
Can Cliffs Natural Resources Maintain Its Stellar Run in 2017?
Cliffs Natural Resources’ (CLF) stock price ended 2016 with a bang, gaining 404% during the year. In this series, we’ll look at earnings estimates for Cliffs.
Is Chinese Property Market Growth Maxing Out?
One of the factors fueling the recent rally in metals and mining shares (GNR) has been the improvement in China’s economic indicators.
What’s Driving Analysts’ Ratings for Cliffs and Its Peers?
Analysts covering Cliffs Natural Resources (CLF) have given it 22% “buy” recommendations, 22% “sell” recommendations, and 56% “hold” recommendations.
How Is the US Steel Import Outlook Impacting Cliffs?
Cliffs Natural Resources’ (CLF) USIO (US Iron Ore) segment mainly sells iron ore to integrated steel companies in the United States and Canada.
Cliffs’ Stock Rose over 400% in 2016: What’s to Come in 2017?
Cliffs Natural Resources’ (CLF) stock price ended 2016 with a rise of 404%, trading at $8.4 per share. The stock hit a high of $10.48 on December 5, 2016.
Are Analysts Becoming Wary of the Run-Up in CLF after Trump’s Win?
Analysts that cover Cliffs Natural Resources (CLF) gave it 22% “buy” recommendations, 22% “sell” recommendations, and 56% “hold” recommendations.
CLF’s CEO on Donald Trump’s Potential Impact on the Steel Sector
Trump announced that his administration would spend $1 trillion on infrastructure. He has also vowed to clamp down on trade cases and protect the steel sector from illegal and subsidized imports.
What Do Institutional Holdings in Cliffs Natural Resources Suggest?
At the end of 3Q16, institutional ownership in Cliffs Natural Resources (CLF) totaled ~61.7%.
Can Cliffs Natural Resources Scale Greater Heights in 2017?
Cliffs Natural Resources (CLF) was trading at $8.85 on December 23, 2016, which represents a 46% rise since Donald Trump’s win in the US presidential election. That brings the year-to-date rise to a whopping 430.0%.
What’s the Word on Wall Street about Vale?
Among the analysts that track Vale (VALE), 15.0% have given the company “buy” recommendations, and 23.0% have given it “sell” recommendations.
Why Are Analysts Turning Bullish on Cliffs Natural Resources?
Cliffs Natural Resources (CLF) is mainly exposed to the US domestic steel market. It has long-term contracts with US steelmakers.
Are Analysts Turning Positive on Iron Ore in the Short Term?
Analysts upgrading on price strength Many analysts have upgraded their iron ore price forecasts due to the recent strength in prices. The Commonwealth Bank upgraded its 2017 outlook for iron ore prices from $53 per ton to $58 per ton. According to The Australian, the bank added, “we upgrade prices over the next year on […]
Iron Ore: What Are China’s Real Estate Indicators Pointing To?
China’s property sector China’s property sector remains in critical condition due to iron ore demand. Investors in iron ore companies such as Rio Tinto (RIO), BHP Billiton (BHP) (BBL), Vale (VALE), and Cliffs Natural Resources (CLF) should keep an eye on developments in China’s property sector. CLF makes up 1.3% of the VanEck Vectors Steel ETF […]
What You Should Know as Vale SA Hits a 52-Week High
Commodity (COMT) producers, especially iron ore producers, have experienced nothing short of a miracle in 2016. Vale SA (VALE) has risen 188.0% YTD.
What Caused Iron Ore Prices to Hit a Two-Year High?
Seaborne iron ore benchmark prices have remained strong this year, and Donald Trump’s win of the US election added fuel to the fire of iron ore’s already steady gains.
Could Trump’s Policies Help Cliffs’s Realized Prices?
Cliffs Natural Resources (CLF) has enjoyed a steep rally of more than 200% year-to-date.
Two Iron Ore Majors Slash Guidance, but Is It Enough?
In their latest quarterly production reports, iron ore mining companies Rio Tinto (RIO) and Vale SA (VALE) reduced their iron ore production forecasts.