Cleveland-Cliffs Inc. (CLF) stock is experiencing a downturn today, influenced by broader challenges in the steel sector, particularly in Mexico. The Mexican steel industry's GDP contracted by a staggering 44.8% in the third quarter of 2024, marking the largest decline in the country's history. This contraction is attributed to a prolonged blockade at ArcelorMittal facilities, which significantly disrupted operations. The ongoing recession in Mexico's steel industry, now the second-longest in its history, has created a ripple effect, impacting steel producers and related companies globally, including Cleveland-Cliffs.
Additionally, the steel sector faces potential risks from proposed tariffs in the North American market. The announcement of a 25% tariff on imports from Canada and Mexico by the US president-elect could further strain the competitiveness of Mexican steel products in the US market. This development adds to the uncertainty and pressure on steel companies, contributing to the negative sentiment surrounding Cleveland-Cliffs.
Cleveland-Cliffs' stock is currently trading at $12.47, down 3.29% from its previous close of $12.90, and has decreased by 2.92% from its opening price of $12.85.