Cleveland-Cliffs Gets Steel-Tariff Boost, Looks to Rare-Earth Minerals

Core Insights - Cleveland-Cliffs reported increased demand for its steel products in Q3, attributing this growth to the Trump administration's tariffs on steel, which have positively impacted its U.S. operations [1][2][3] - The company's Q3 sales reached $4.73 billion, a rise from $4.57 billion year-over-year, although it fell short of analysts' expectations of $4.9 billion [3] - Cleveland-Cliffs is exploring opportunities in rare-earth mineral production, with potential mining sites identified in Michigan and Minnesota, aligning with national strategies for material independence [4][6] Financial Performance - Q3 revenue for Cleveland-Cliffs was $4.73 billion, up from $4.57 billion in the same quarter last year [3] - The company's stock price increased by 17% to $15.56 in early trading, marking a nearly 70% rise year-to-date [5] Strategic Initiatives - The CEO highlighted the importance of U.S. manufacturing to avoid tariffs, stating that the current trade policy is beneficial for securing new supply deals with major auto manufacturers [2][3] - The push into rare-earth minerals is part of a broader strategy to enhance domestic production capabilities, particularly in light of recent trade tensions with China [5][6] Market Context - The rare-earth sector has seen increased interest due to heightened trade tensions, particularly following China's tightening of export controls on rare-earth materials [6][7] - The U.S. government's actions, including the Pentagon's investment in MP Materials, reflect a growing focus on securing domestic sources of critical materials [7]