Takeaways
- Shares of Cleveland-Cliffs and other steel producers gained Wednesday after raising steel prices.
- The company set a base price for steel. Hot-rolled steel at $750 a ton.
- Cleveland-Cliffs shares also got a boost this week following an analyst upgrade from Citi Alexander Hacking.
Shares of Cleveland-Cliffs (CLF) rose Wednesday after the steel producer announced it was raising prices. Shares of other companies in the sector were also higher.
Cleveland-Cliffs said& #39;it was increasing its current spot market base prices for all hot-rolled, cold-rolled and coated carbon steel products, effective immediately. It set its minimum base price for hot-rolled steel at $750 per ton.
Earlier this week, shares of Cleveland-Cliffs also benefited from an upgrade from Citi analyst Alexander Hacking, who raised them from “Hold” to “Buy.” . Hacking pointed to a likely increase in demand for sheet steel due to seasonal restocking by customers, and suggested it would be even higher if the strike against the big three automakers was settled. It also upgraded rival Steel Dynamics (STLD).
Wednesday's news sent U.S. Midwest hot-rolled steel coil futures soaring. These prices struggled after hitting a 2023 high in March.
However, even after Wednesday Gains in Cleveland-Cliffs shares, up 3.5% at 1530 GMT, were recorded. As of 1:30 p.m. ET, shares were down 9.4% for the year.
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Source: investopedia.com