NEW YORK (TheStreet) --Shares of Cliffs Natural Resources Inc. (CLF) were lower by 7.87% to $6.16 in late afternoon trading on Monday, as the iron ore and metallurgical coal producer reacted negatively to Australia cutting its iron ore price estimate for next year.
Shares of Cliffs Natural resources are up by 0.11% to $6.17 in after-hours trading today.
Australia slashed its iron ore price estimate by 33% due to a rise in output, which has outpaced Chinese demand and growth, creating a surplus, Bloomberg reports.
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Australia's Department of Industry said iron ore prices will average $63 a metric ton, compared to $94 a ton forecast in September, Bloomberg added.
Iron ore fell 49% this year due to miners expanding production in Australia, which pushed the market into oversupply, Bloomberg noted.
Additionally, energy stocks took a hit today as oil prices fell due to comments made over the weekend by Saudi energy minister Ali al-Naimi, who said the nation will maintain its oil production, and is considering an increase if it discovers a new client, MarketWatch reports.
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: