Cleveland-Cliffs Stock Is Rising With Steel Prices Thursday: What's Going On?

Cleveland-Cliffs Inc CLF shares are trading higher Thursday after the company announced it will achieve higher annual fixed prices for steel in 2023 compared to 2022.

Cleveland-Cliffs said a large portion of its fixed price contractual volumes were renewed in its most recent negotiating cycles, making it clear that prices will be higher year-over-year. The company noted that the improved annual fixed prices are independent of its recently announced price increases on spot steel sales.

Cleveland-Cliffs now expects an average selling price of approximately $1,400 per net ton in 2023 from its direct carbon steel automotive customers. For comparison, the company anticipated full-year 2022 prices of approximately $1,300 per net ton.

Cleveland-Cliffs has also achieved "significantly higher" contractual fixed prices for its grain-oriented electrical steels for 2023 compared to 2022. Separately, as a result of lower input costs and normalized repair and maintenance expenses, the company expects significantly lower Steelmaking unit costs in 2023 versus 2022.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. 

See Also: 5 Value Stocks In The Basic Materials Sector

CLF Price Action: Cleveland-Cliffs has a 52-week high of $34.04 and a 52-week low of $11.83.

The stock was up 9.81% at $16.62 at time of publication, according to Benzinga Pro.

Photo: Abel Sanchez from Pixabay.