NEW YORK (TheStreet) -- Shares of Cliffs Natural Resources Inc (CLF) are down 5.66% to $5 in afternoon trading Tuesday as the slump in iron ore prices drag down producers of the steel-making ingredient.
Iron ore fell 3.5% to $58.53 a ton, according to a price index compiled by Metal Bulletin.
Yesterday, Cliffs Natural Resources stock fell after analysts at Citigroup lowered its forecast for iron ore prices.
Citigroup expects iron ore prices to decline to $40 per metric ton in the second quarter of fiscal year 2015, amid increased production of iron ore by multiple companies.
Also, Citigroup analysts noted that they see decreasing demand in China, the largest consumer of iron ore, as the country's economy slows down.
Cleveland, Ohio-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.
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 a number of negative factors, 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, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."