Cleveland-Cliffs increases prices for carbon steel products

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Cleveland-Cliffs Inc. (NYSE: CLF) said Thursday, May 21, its newly acquired AK Steel subsidiary was raising base spot market prices for all flat-rolled carbon steel products by a minimum of $ 40 per tonne , with immediate effect with new orders in North America.

MarketWatch.com reported that the increase “suggests prices are going up by at least 4%,” as the Cleveland-based iron ore mining company said the average net selling price per net ton of rolled steel dish during the first quarter was $ 997.

Cliffs isn’t the only company in the industry to implement price hikes. US Steel and ArcelorMittal are also raising plate prices by $ 40 a tonne, Cowen analyst Tyler Kenyon said, according to this SeekingAlpha article.

“Although this is the second attempt by US plate mills this month to raise prices, Kenyon believes higher scrap, attractive contract discounts, and improved demand as customers will likely reopen at least support pricing / delivery times over the next 30 days, â€SeekingAlpha reported. .

Cliffs completed the acquisition of AK Steel in March.

The company released first quarter results on May 11 which showed a net loss of $ 48.6 million, or 18 cents per share, compared with a loss of $ 22.1 million, or 8 cents per share, at the same quarter of 2019. The first quarter The 2020 figure included $ 66 million, or 22 cents per share, of acquisition costs, severance pay, and inventory amortization.

Revenue jumped 128.7% year-on-year to $ 359.1 million.

Cliffs stock closed Thursday at $ 4.71 per share. The stock’s 52-week high is $ 11.61 per share, and the 52-week low is $ 2.63.

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