Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Flat-rolled steel maker Cleveland-Cliffs’ EBITDA stood at a loss of $78.1mn in Q4 2020, an improvement of $95.4mn above the Q3 EBITDA loss of $173.5mn. 

 

The company attributed the improved earnings to higher sales pricing, in total and based on a constant mix, cited in a Mar 10 letter to employees.

 

Cliffs’ Q4 2020 cost of steel sales per ton was $688/nt as compared to the steelmaker’s targeted goal of $685/nt. This compares to the company’s average net selling price of steel products at $947/nt in 2020 and $880/nt in Q4 2020, as Cliffs noted in a release on Feb 25.

The steel maker’s steel products sales volume stood at 3.78mn nt in 2020.

 

Relatedly, in the spot market, US domestic HRC is presently trading around $1,322-1,389/mt ($1,200-1,260/nt) fob mill, up $198-221/mt against HRC deal levels of $1,124-$1,168/mt ($1,020-1,060/nt) in late January.

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