Cleveland-Cliffs Inc. (CLF) witnessed a pre-market plunge of 6.55% on Tuesday, as the steel giant grappled with disappointing fourth-quarter earnings results and concerns over cheap steel imports weighing on the domestic industry.

For the fourth quarter of 2024, Cleveland-Cliffs reported an adjusted loss of $0.68 per share, wider than analyst estimates of a $0.61 loss. Revenue of $4.33 billion also fell short of expectations, coming in below the consensus estimate of $4.43 billion. The steelmaker's lackluster results were impacted by weak demand, pricing pressures, and rising costs plaguing the steel sector.

Adding to the woes, concerns over cheap steel imports from China entering the U.S. market via Mexico have exacerbated the industry's struggles. This practice, known as "transshipment," has been a major concern for domestic steelmakers like Cleveland-Cliffs, as they face increased competition from subsidized imports. The bearish sentiment towards the steel sector amid oversupply issues and slowing demand has weighed on Cleveland-Cliffs' stock.