Why is Cleveland-Cliffs stock plunging today? Q3 profits drop nearly 90% (NYSE: CLF)
Cleveland-Cliffs (NYSE:CLF) closed 8% lower on Tuesday after the report Q3 profit declines and increase costs while failed to assuage worries that steel demand is in free fall.
Steel prices in the US have almost been cut in the half since January as strong inflation and weak demand hit an industry with dizzying growth in 2021.
Cliff (CLF) shares fell as much as 15% before recouping some of their losses, supported by comments by CEO Lourenco Goncalves in the company earnings conference call that he expects auto steel shipments to improve in Q4.
CEO predicts higher auto demand will returned the company nearly 4 million tons of steel shipments quarterly, compared with 3.6 million tons shipped in Q3.
“We were encouraged by 100K [short tons] According to S&P Global Platts, the worst impact of the chip shortage seems to be behind us from customers who used their cars from Q2 to Q3 and while they have yet to return to normal levels.
Cleveland-Cliffs’ (CLF) Q3 earnings “much worse than expected” and steel prices continue to fall, Quad 7 Capital wrote in a New analysis published on Seeking Alpha.