Shares of Cleveland-Cliffs Inc. (CLF) tumbled 5.38% on Monday in intraday trading, as the steelmaker grappled with disappointing fourth-quarter earnings and concerns over cheap steel imports weighing on the sector.
For the fourth quarter of 2024, Cleveland-Cliffs reported an adjusted loss of $0.68 per share, missing 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 wider-than-expected loss and revenue miss underscore the headwinds facing the steel industry, including weak demand, pricing pressures, and rising costs. Cleveland-Cliffs' results were impacted by these challenges, which have plagued the sector in recent months.
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 stock's decline on Monday extended its recent struggles, reflecting broader bearish sentiment towards the steel sector amid oversupply issues and slowing demand. Analysts and investors have grown increasingly cautious about steel stocks like Cleveland-Cliffs, as the industry grapples with these headwinds.
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