Investment Rating - The report does not explicitly state an investment rating for the steel industry Core Insights - The steel market is experiencing varied price movements across different regions, with the US showing the highest year-to-date price increase of 34% and Europe at 28% [3] - China's crude steel production increased by 18% month-on-month in March 2025, indicating a recovery from previous declines [3] - The report highlights that India is the main growth driver in steel production, with an 8% year-on-year increase [3] Global Prices - In April, hot-rolled coil (HRC) prices in Brazil declined by 1% month-on-month, while prices in China, Japan, and the US fell by 3%, 2%, and 2% respectively [3] - On a year-to-date basis, the highest price increases have occurred in the US (+34%) and Europe (+28%) [3][6] Regional Production Insights - China's crude steel production showed a year-on-year growth of 5% in March, recovering from earlier declines [3] - EU crude steel production rose by 16% month-on-month in March but remained flat year-on-year [3] - Latin America saw a 9% month-on-month increase in crude steel production in March, reverting to a 7% year-on-year growth [3] Price Performance - HRC price performance in various regions for April shows the following: EU at $745 (+7.6% month-on-month, +28% year-to-date), US at $1,020 (-2.1% month-on-month, +34.1% year-to-date), and China at $449 (-3.4% month-on-month, -4.7% year-to-date) [6] - Rebar prices in the EU increased by 6.3% month-on-month and 17% year-to-date, while in China, prices decreased by 4.3% month-on-month [13] Capacity Utilization - Global effective steel capacity utilization is reported at varying levels, with China showing a utilization rate of 91.6% in April 2025 [36] - The report indicates that spare capacity by region is significant, with China having the highest spare capacity at 80 million tonnes [25] Trade and Demand - The report notes an increase in flat steel demand, which is above last year's levels, indicating a positive trend in the market [55] - Long steel demand has also increased over the past two weeks, suggesting a recovery in this segment [59] Steelmakers' Profitability - The profitability of steelmakers is under pressure as HRC prices decreased by 3% month-on-month and rebar prices by 4% month-on-month in China [62] - The report highlights that the spreads for HRC and rebar have decreased, impacting overall profitability [66]

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.Cleveland-Cliffs' (NYSE: CLF ) stock price performance has become a real pain point for me and my investment coverage here on Seeking Alpha, as CLF has been constantly underperforming the broader market even amid situations whenHe leads the investing ...

Company Overview - Steel Dynamics (STLD) is one of the largest and most efficient steel producers in the United States, utilizing electric arc furnace technology [1] - The company was founded in 1993 and has since grown into a vertically integrated steel producer [1] Industry Insights - The company operates in the steel production industry, which is characterized by its reliance on advanced technologies such as electric arc furnaces [1] - Steel Dynamics has established a strong position in the market, indicating potential for continued growth and efficiency improvements [1]

Core Viewpoint - Tree Island Steel reported a decline in revenues and profits for the first quarter of 2025, primarily due to reduced sales volumes and operational adjustments in response to market conditions [2][3]. Financial Performance - Revenues for the three months ended March 31, 2025, decreased by $6.4 million to $50.2 million from $56.6 million in the same period in 2024 [2]. - Gross profit fell to $3.9 million from $4.8 million year-over-year, attributed to lower sales and production volumes despite higher average selling prices [2]. - Adjusted EBITDA decreased to $2.0 million from $3.1 million in the same period in 2024 [2][5]. - Net income for the first quarter was $2, down from $625 in the same period in 2024, with net income per share remaining at $0.00 compared to $0.02 previously [4]. Operational Adjustments - The company reduced its workforce by 9% to manage operational costs in light of changing demand [2]. - The COO indicated that the company is rebalancing production and exploring new market opportunities to leverage operational capabilities [3]. Market Conditions - The decline in sales was primarily driven by lower demand from U.S. customers in the residential segment and the company's decision to withdraw from unprofitable product lines [2]. - A pullback in demand was noted due to U.S. tariffs on certain steel products made in Canada, impacting sales volumes [2]. Company Overview - Tree Island Steel, established in 1964, produces a variety of wire products for industrial, residential, commercial, and agricultural applications, with operations in Canada and the U.S. [6].

Company Overview - Companhia Siderúrgica Nacional (CSN) held its Q1 2025 earnings conference call on May 9, 2025, at 10:30 AM ET, featuring key executives including the CFO, ESG Director, and CEO [1][2]. Conference Call Structure - The conference call was structured to include a presentation followed by a Q&A session, with participants initially in listen-only mode [2]. Management Expectations - The management provided forward-looking statements regarding expectations and trends, emphasizing that actual results may differ due to various factors including economic conditions and regulatory changes [3].

Core Viewpoint - Cleveland-Cliffs Inc. is under investigation for potential securities fraud following a disappointing financial report that revealed a larger than expected adjusted loss and a significant revenue decline [1][3]. Financial Performance - Cleveland-Cliffs reported a first-quarter revenue decline of 11% year-over-year, totaling $4.63 billion [3]. - The company announced plans to fully or partially idle six steel plants due to underperforming non-core assets and the impact of lower index prices from late 2024 and early 2025 [3]. Stock Market Reaction - Following the financial results announcement, Cleveland-Cliffs' stock price dropped by $1.34 per share, or 15.78%, closing at $7.15 per share on May 8, 2025 [4]. Company Strategy - The CEO indicated a strategic shift to reposition the company's portfolio away from non-core markets, such as rail and high-carbon sheet products, and towards the automotive industry [3].

Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - In May, finished steel products may face pressure, potentially forcing steel mills to cut production, with a high probability of molten iron production reaching its peak. Without clear administrative production restrictions, production cuts require further compression of steel mill profits to ease supply pressure. The unilateral drive of finished steel products may continue downward, but the absolute prices are not low, so the risk of chasing short positions is relatively high. It is recommended to focus on short - profit positions [2][62] Summary According to Relevant Catalogs Supply - In April, although there were many expectations of steel mill production restrictions, no definite documents were issued. Steel mills maintained good profits, with the profitability rate of steel enterprises around 60%, higher than in 2024. In the traditional peak demand season of April, steel products were destocked, and steel mills had little inventory pressure, so they had little willingness to cut production actively. In the first quarter, the crude steel output increased by 0.6% year - on - year. In April, the output of the five major steel products increased by 2.04% month - on - month and 1.30% year - on - year, and the daily average molten iron output was 2.45 million tons, a year - on - year increase of 4.5%. It is expected that the crude steel output in April will increase by about 4% year - on - year. In May, due to better profits than in 2024 and seasonal factors, supply is expected to increase further [3][9] Demand - In April, the apparent demand for the five major steel products continued to improve, with an average of 933310 tons, a month - on - month increase of 4.8% and a year - on - year decrease of 1.5%, and the year - on - year decline rate was narrowing. The decrease was mainly due to the building materials sector. The average apparent demand for rebar in April was 265570 tons, a year - on - year decrease of 5.01%. The demand for plates was good. In the first week of May, the data decreased significantly month - on - month, but it is expected to be related to holidays and pre - holiday stockpiling, and the demand was relatively stable on a two - week average. The manufacturing industry performed well in the first quarter, with manufacturing investment from January to March increasing by 9.1% year - on - year. Benefiting from policies, the steel demand in the automotive, home appliance, and machinery manufacturing industries increased. In April, the high - frequency data showed that the demand for automobiles and home appliances was still strong, and the growth rate accelerated. However, the manufacturing PMI in April was 49%, down 1.5 percentage points from the previous month, and the new export order index was 44.7%, down 4.3 percentage points from the previous month. The real estate sector still dragged down steel demand, but some data improved. The infrastructure demand was better than in 2024, and the direct export in the first half of the year is expected to maintain growth [10][13][24] Inventory - In April, the destocking speed of rebar accelerated, with a weekly destocking of about 50000 tons at the end of the month, basically the same as in 2024, and the inventory at the end of the month was only 653630 tons. In May, rebar faces the pressure of slower destocking, and enterprises are actively destocking. Hot - rolled coils have strong supply and demand and have been destocking since March, with inventory significantly lower than in 2024. However, the supply pressure of cold - rolled coils is high, and there was basically no destocking in April, and the price difference between hot - rolled and cold - rolled coils narrowed. Plates still face inventory pressure [41] Raw Materials - In addition to export factors, the weakness of raw materials is an important factor in the decline of steel prices, mainly coking coal. High supply and high upstream inventory are the main reasons for the price decline. Currently, the 09 contract has fallen below 900, and there are expectations of a decline in domestic and some imported coal supplies. The core factor for price fluctuations is demand. Coke mainly follows coking coal. The capacity utilization rate of independent coking enterprises is low, and the total inventory is higher than in 2024. After the first price increase, whether another increase can be implemented is driven by the price of finished steel products. In the first quarter, the global iron ore shipment decreased by about 8 million tons year - on - year, and there was no year - on - year increase in April. Considering the high molten iron production, the pressure of iron ore inventory accumulation in the second quarter is not large, and the 09 contract is deeply discounted against the spot, which also supports the futures price. Overall, raw material supply is not the main problem, and the price decline in April was mainly due to poor steel demand expectations, and the core driver in May is still expected to be demand [45]

Core Insights - Cleveland-Cliffs reported a revenue of $4.63 billion for Q1 2025, marking an 11% decline year-over-year, with an EPS of -$0.92 compared to $0.18 a year ago [1] - The revenue slightly exceeded the Zacks Consensus Estimate of $4.6 billion, resulting in a surprise of +0.71%, while the EPS fell short of the consensus estimate of -$0.78 by -17.95% [1] Financial Performance Metrics - Total steel shipments were reported at 4,140 KTon, surpassing the average estimate of 4,064.01 KTon [4] - The average net selling price per net ton of steel products was $980, slightly below the estimated $985.85 [4] - Steelmaking revenues totaled $4.47 billion, exceeding the estimate of $4.43 billion but reflecting an 11.1% decline year-over-year [4] - Revenues from coated steel were $1.36 billion, compared to the estimate of $1.34 billion, showing a year-over-year decline of 16.1% [4] - Revenues from slab and other steel products were $247 million, below the estimate of $312.45 million, indicating a 26.3% year-over-year decline [4] - Revenues from cold-rolled steel were $591 million, exceeding the estimate of $555.93 million, with a year-over-year decline of 21.1% [4] - Revenues from hot-rolled steel were $1.17 billion, slightly below the estimate of $1.18 billion, reflecting a year-over-year increase of 3.4% [4] Stock Performance - Cleveland-Cliffs shares have returned +6.8% over the past month, compared to the Zacks S&P 500 composite's +11.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Overview - Metallus Inc reported net sales of $1.1 billion in 2024 [9] - The company has an annual melt capacity of approximately 1.2 million tons and a ship capacity of approximately 0.9 million tons [9] - In 2024, Automotive accounted for 45% of the company's shipment mix and 42% of net sales [23] - In 2024, Industrial accounted for 40% of the company's shipment mix and 36% of net sales [23] - In 2024, Aerospace & Defense accounted for 8% of the company's shipment mix and 12% of net sales [23] - In 2024, Energy accounted for 7% of the company's shipment mix and 8% of net sales [23] Financial Performance and Outlook - In Q1 2025, Metallus' net sales were $280.5 million, a 17% increase compared to Q4 2024 [29] - The company's cash and cash equivalents balance was $180.3 million, with total liquidity of $432 million as of March 31, 2025 [29] - The company expects Q2 2025 adjusted EBITDA to be higher than Q1 2025 [29] Capital Allocation and Investment - Planned capital expenditures are approximately $125 million for the full year 2025, inclusive of approximately $90 million of capital expenditures funded by the U S government [29] - From 2022 through Q1 2025, the company repurchased 7.1 million shares for $127.8 million [85]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA loss of $174 million for Q1 2025, reflecting the lagged impact of low steel prices and underperforming non-core assets [30][4] - Total shipments in Q1 were 4.14 million tons, consistent with guidance to exceed 4 million tons, aided by a full quarter contribution from Stelco [30] - Price realization for Q1 was $980 per net ton, a slight improvement from Q4's $970, but still weighed down by lower realizations in cold rolled products [30] Business Line Data and Key Metrics Changes - The automotive segment remains a high-margin business, with expectations of an annual EBITDA benefit of $250 million to $500 million starting in the second half of 2025 [10] - The company is idling several non-core assets, which is expected to lead to a $50 per ton year-over-year reduction in costs for 2025 [31][12] Market Data and Key Metrics Changes - In 2024, only 50% of cars sold in the U.S. were domestically produced, highlighting the need for reshoring automotive production [6] - The company is seeing a shift of automotive production back to the U.S., which is expected to benefit its steel supply business significantly [9][61] Company Strategy and Development Direction - The company is focused on returning to profitability and free cash flow generation by addressing three key issues: underperformance in automotive markets, loss-making operations, and a burdensome slab supply contract [5][19] - Strategic actions include idling non-core assets and optimizing the operating footprint to enhance cost competitiveness [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved pricing and a more consistent business environment starting in April and May 2025 [4] - The company anticipates significant EBITDA improvement in the second half of 2025 and a reset higher in 2026 as various strategic initiatives take effect [31][38] Other Important Information - The company has reduced its 2025 capital expenditure guidance from $700 million to $625 million, primarily due to idling non-core assets [35][107] - The company maintains a healthy liquidity position with approximately $3 billion in available liquidity and $3.3 billion in secured capacity [36] Q&A Session Summary Question: Timing for achieving $300 million savings - Management indicated that the full impact of the $300 million savings will start to materialize in the second half of 2025, primarily from the Cleveland Dearborn switch [40][42] Question: Cost and ASP expectations for Q2 - Costs are expected to increase by about $5 per ton from Q1 to Q2, while ASP is projected to rise by approximately $40 per ton [62][63] Question: Impact of steel tariffs on Stelco - Management clarified that the tariffs do not change the strategic plan for Stelco, which is focused on serving the Canadian market [49][50] Question: Domestic auto production assumptions - Management expects an increase in domestic auto production, which will benefit the company significantly, regardless of overall car sales in North America [57][61] Question: Updates on asset sales - The company has received unsolicited inquiries for non-core assets, which could potentially bring several billion dollars in value [68][69] Question: CapEx and project updates - The company is lowering its CapEx guidance and expects significant reductions in future years, particularly related to strategic projects [107][108]