Here’s Why Cliffs Natural (CLF) Stock Is Rallying Today
NEW YORK (TheStreet) -- Shares of Cliffs NaturalResources (CLF) - Get Report are jumping 11.8% to $6.82 on Monday afternoon alongside other mining stocks as China's iron ore demand rises, Barron's reports.
Record iron ore shipments to China went through Australia's Port Hedland terminal last month, which propelled Chinese inventories at certain ports to two-year highs, according to trade magazine Mining Weekly.
Additionally, shipments from Brazilian mining company Vale (VALE) soared about 25% in May.
Other producers BHP Billiton (BHP) and Fortescue Metals Group (FSUGY), which ship iron ore from Australia to China, have been operating at full capacity, the trade magazine said.
But the increase in demand could represent more of a shift than a rise as higher-grade imports are displacing lower quality domestic iron ore in steel mills in China, Mining Weekly noted.
Cliffs is a Cleveland-based mining and natural resources company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CLF