Steel Mills

Cliffs’ Q3 Results Take a Hit, But Auto Demand Rebounds
Written by Laura Miller
October 25, 2022
Cleveland-Cliffs Inc. expects a continuation of the trend it saw in the third quarter of increasing shipments to the automotive sector. This should support steel pricing going forward, the steelmaker said in its Q3 earnings report released on Tuesday, Oct. 25.
“Shipments to our automotive clients significantly improved in Q3, achieving a level among the highest in six quarters. That allowed us to hold sales volumes steady in Q3, despite much weaker service center activity,” noted Cliffs’ chairman, president, and CEO Lourenco Goncalves. “We expect this positive trend in automotive shipments to continue into Q4, with the added benefit of improved pricing from our successful renewal of contracts pertaining to the October cycle,” he added.
Cliffs’ external sales volumes were down 12% year-on-year (YoY) to 3.635 million tons in Q3, while revenues declined 6% to $5.635 billion. Net income, meanwhile, plummeted 87% to $165 million.
Goncalves said the Q3 results were impacted by “the delayed inventory impact of higher input costs” including natural gas, electricity, scrap, and alloys. Maintenance expenditures also affected the quarterly results, including a full reline of the No. 5 blast furnace at its Cleveland Works which was completed in August. He expects costs to decline going forward now that all major projects have been wrapped up and production levels are back to more normal levels.
Q3 steelmaking revenues totaled $5.5 billion, with 31% of direct sales going to the automotive market, 27% to distributors and converters, 27% to the infrastructure and manufacturing markets, and 15% to steel producers.
Of note during Q3, Cliffs reached new, four-year labor agreements with its United Steelworkers (USW) union represented steelworkers and mining workers and also reduced its post-retirement liabilities after successfully negotiating better healthcare rates for its retirees.
Cliffs’ outlook for the remainder of the year includes an average hot-rolled coil index price of $730 per net ton, higher slab shipments and higher production volumes, as well as lower energy and raw material costs.
By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller
Read more from Laura MillerLatest in Steel Mills

Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.

ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.

Ternium posts solid Q2, expects further shipment growth
Latin American steel producer Ternium delivered a solid performance in the second quarter of 2025. Performance was driven primarily by higher realized steel prices in Mexico, even as shipment volumes declined slightly across its regional portfolio.

Algoma swings to loss on ‘unprecedented disruptions’ and trade barriers
Canada’s Algoma Steel saw a sharp loss in the second quarter amid a continued challenging market environment and “tariff uncertainties.”

Nucor eyes long-term gains amid strong demand and trade enforcement
Resilient demand across its steel product lines, combined with the continued ramp-up of key expansion projects, drove Nucor’s improved financial results and record-setting performance in the second quarter. That’s according to company executives speaking on an earnings conference call on Tuesday.