Cleveland-Cliffs Inc. (CLF) saw its stock decline by 3.57% on December 4, 2024, closing at $12.44, down from the previous day's close of $12.90. The stock opened at $12.85 and reached a low of $12.38 during the trading session. The downturn in CLF's stock price is largely attributed to broader challenges in the steel sector, particularly in Mexico, where the steel industry's GDP contracted by 44.8% in Q3 2024. This significant decline is due to a prolonged blockade at ArcelorMittal facilities, which has disrupted operations and created a ripple effect impacting global steel producers, including Cleveland-Cliffs.
Additionally, the announcement of a proposed 25% tariff on steel imports from Canada and Mexico by the US president-elect has added to the uncertainty and negative sentiment surrounding steel companies. Despite these challenges, some analysts, such as those from Goldman Sachs, maintain a positive outlook on Cleveland-Cliffs, citing potential earnings growth and successful execution of cost-control initiatives. However, the immediate market reaction reflects concerns over the current global steel market conditions and potential trade policy impacts.