Cliffs Natural Resources (CLF) Stock Falling Today After Citi Warns of Slowing China Demand
NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources (CLF) - Get Report are falling, down 5.75% to $4.59 in afternoon trading Tuesday, following a warning by analysts at Citigroup that global commodity markets will see slower and less synchronized demand growth in China, according to Bloomberg.
Iron ore producers, including Cliffs Natural Resources, are among the hardest hit due to their exposure to China's manufacturing, infrastructure and real estate sectors, Citigroup added.
Last week, the China & Iron Steel Association, which is funded by China's major steelmakers and the only nationwide industry organization, said steel production in China will shrink this year as consumption has peaked, Bloomberg reported.
Deputy Secretary-General Li Xinchuang said that output is expected to contract to 814 million metric tons in 2015 from 823 million tons a year prior.
Cleveland, OH-based Cliffs Natural Resources is an international mining and natural resources company.
The company is an iron ore producer and a producer of metallurgical coal with its operations organized according to product category and geographic location.
In the U.S., Cliffs operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia.
Insight from TheStreet's Research Team:
Bob Byrne commented on Cliffs Natural Resources in a recent post on RealMoney.com. Here is what Byrne had to say about the stock:
In the world of bottom-fishing stocks, few names have hurt traders worse than those in the coal and iron-ore sectors. I received several questions regarding Peabody Energy(BTU) and Cliffs Natural Resources(CLF) on Thursday, and while I tried to keep open mind, I just can't find a single reason to buy either stock. It doesn't matter whether you're looking at BTU, Alpha Natural Resources (ANR), Cloud Peak Energy (CLD) or Walter Energy (WLT).
From a technical perspective, they're all pretty much the same. Ugly! They should all be avoided. And as far as CLF is concerned, there's little to do there until iron ore futures begin to stabilize. For the record, iron ore futures were printing new multi-year lows on Wednesday. Like anything in the coal sector, CLF should be avoided.
-Bob Byrne, 'The Trade Daily' originally published 3/13/2015 on RealMoney.com.
Want more information like this from Bob Byrne BEFORE your stock moves? Learn more about RealMoney.com now.
Separately, TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share." You can view the full analysis from the report here: CLF Ratings Report