Steel company Cleveland-Cliffs’ (CLF) shares soared over the past few months as steel prices surged with rising demand. However, its shares plunged significantly since hitting its 52-week high of $26.51 on August 13, as China took measures to curb steel production. So, can the stock rebound on the back of its solid financials?.Cleveland-Cliffs Inc. (NYSE:CLF) became the largest flat-rolled steel company and the largest iron ore pellet producer in North America after acquiring AK steel and ArcelorMittal (NYSE:MT) USA last year. Thanks to the soaring steel prices, CLF’s shares surged 212% over the past year. The company also aims to achieve net-zero debt by 2022, and its adjusted EBITDA is expected to be roughly $1.80 billion in the third quarter.
Also, the stock soared to hit its 52-week high of $26.51 on August 13, on the back of investors’ optimism surrounding the infrastructure bill. However, it has lost 24% since hitting its 52-week high and 16.5% over the past month as China has been taking steps to limit steel production. Moreover, Speaker Nancy Pelosi suggested that the U.S. House of Representatives may not vote on the $1 trillion bipartisan infrastructure bill today. So, CLF’s near-term prospects look uncertain.
Here’s what could influence CLF’s performance in the upcoming months: