Cleveland-Cliffs Inc.: Can The Stelco Acquisition Be A Game Changer?  

Cleveland-Cliffs presented its third-quarter 2024 results during a challenging period of weaker steel demand and pricing, largely attributed to reduced automotive production and high interest rates affecting consumer decisions. The company’s acquisition of Stelco, a Canadian steelmaker, was a notable development during this period, promising operational agility and cost efficiency.Cleveland-Cliffs reported a quarterly adjusted EBITDA of $124 million on 3.8 million tons of shipments. This was a decline from previous performance levels, which the company attributed to reduced activity in the automotive industry. North American automotive build rates were particularly low, reminiscent of the semiconductor shortages experienced a few years ago. Additionally, the general weakness in non-automotive sectors further pressured prices and shipment volumes, leading to an $80 per ton reduction in average selling prices and 150,000 fewer tons shipped compared to the previous quarter.