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VanEck Steel ETF

VanEck Vectors Steel ETF

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The fund normally invests at least 80% of its total assets in common stocks and depositary receipts of companies involved in the steel sector. Such companies may include small- and medium-capitalization companies and foreign and emerging market issuers. It may concentrate its investments in a particular industry or group of industries to the extent that the Steel Index concentrates in an industry or group of industries. The fund is non-diversified.

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Vale S.a.

Nucor Corp

Steel Dynamics Inc

Warrior Met Coal Inc

Reliance Steel & Aluminum Co

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Posco Holdings Inc

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Silexion Therapeutics Corp - Ordinary Shares

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VALE S.A.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VALE#NYSE">VALE</a>) shares are surging on Thursday. On Wednesday, the company reported net operating revenues decline of 22% year over year to $10.124 billion, beating&nbsp;<a target="_blank" href="https://api.mziq.com/mzfilemanager/v2/d/53207d1c-63b4-48f1-96b7-19869fae19fe/ef08c06a-f29a-9272-3ba5-283e7e3c6617?origin=1" rel="noreferrer noopener">the</a> consensus of $10.117 billion.
Iron ore shipments declined by 9.1 Mt Y/Y due to portfolio optimization focusing on higher-margin products. The average realized iron ore fines price declined 21% Y/Y to $93/t due to lower benchmark prices.
Copper and nickel all-in costs stood at $1,098/t and $13,881/t, respectively—the lowest since fourth-quarter 2020 for copper and since first-quarter of 2022 for nickel.&nbsp;
Proforma EBITDA declined 40% Y/Y to $4.1 billion in the quarter due to a decline in iron ore prices and sales volumes. Adjusted EPS of 20 cents missed <a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener">the consensus of 43 cents</a>.
Capital expenditure fell 17% Y/Y to $1.77 billion in the quarter. As of December 31, cash and cash equivalent stood at $4.95 billion.
The company approved $1.984 billion in dividends and interest on capital, set for payment in March 2025, representing an annualized dividend yield of 10.4%.  Additionally, Vale renewed the share buyback program for 18 months, allowing for the repurchase of up to 120 million shares.
Gustavo Pimenta, CEO, said,&nbsp;"We are pleased to report a strong operational and financial performance in 2024, underscored by the highest iron ore production since 2018 and record copper production at Salobo. Our disciplined approach to cost and operational&nbsp;effeciency&nbsp;has driven significant improvements, with our C1 at&nbsp;US$ 18.8/t&nbsp;in Q4, the lowest level since 2022.&#8221;
&#8221;Regarding safety and dam management, we have made meaningful progress by eliminating four additional dams in 2024 and completing 57% of our dam&nbsp;decharacterization&nbsp;program. This year, we expect to remove the last dam at emergency level 3. We begin 2025 highly optimistic about our ability to meet our annual targets and advance our strategic priorities."
Outlook: Vale sees iron ore production of 325-335 Mt for FY25 and 340-360 Mt&nbsp;<a target="_blank" href="https://api.mziq.com/mzfilemanager/v2/d/53207d1c-63b4-48f1-96b7-19869fae19fe/37cb9949-5288-05dd-c822-c29e1b9fe0f4?origin=1" rel="noreferrer noopener">in</a> FY26, driven by project ramp-ups and the start-up of the Serra Sul +20 project.
For 2025, all-in costs&nbsp;are projected&nbsp;to be $53-$57/t, with a further decline to $50-$54/t in 2026. This reduction is owing to lower C1 cash costs, supported by efficiency improvements, increased production, and a shift&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">toward higher-quality products</a>.
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and&nbsp;IShares Latin America 40 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ILF#NYSE">ILF</a>).
Price Action: VALE sharse are up 3.75% at $10.11 at the last check Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43821214/trump-calls-for-more-tariffs-federal-reserve-minutes-on-deck-whats-driving-markets-wednesday" target="_blank" rel="noreferrer noopener">Trump Calls For More Tariffs, Federal Reserve Minutes On Deck: What&#8217;s Driving Markets Wednesday?</a></li>
</ul>
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VALE Q4: Lower Iron Ore Prices Weigh on Earnings, Stock Buyback Renewal And More

China's metal markets are waking up post-Lunar New Year, and JPMorgan analyst Dominic O'Kane is tracking <a href="https://www.benzinga.com/markets/commodities">some eye-catching trends</a>.
Copper and iron ore prices are at four-month highs, steel output is the strongest since 2021, and base metal inventories are running at record-low seasonal levels. 
The takeaway? A tight physical market could be setting the stage for a bullish move—if China's demand kicks in.
Read Also: <a href="https://www.benzinga.com/government/regulations/25/02/43603930/tech-stocks-surge-steelmakers-jump-on-trumps-25-tariffs-copper-hits-9-month-highs-whats-driving-markets-monday">Tech Stocks Surge, Steelmakers Jump On Trump&#8217;s 25% Tariffs, Copper Hits 9-Month Highs: What&#8217;s Driving Markets</a>
<h2 class="wp-block-heading">Copper's Mixed Signals</h2>
Copper prices have climbed 5% in the last two weeks to around $9,500 per ton, but China's domestic demand isn't quite keeping pace. JPMorgan points out that physical copper demand is lagging seasonal norms, reflected in a 20% drop in China's copper premia. 
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43432736/copper-stocks-on-shaky-ground-jpmorgan-analysts-say-tariffs-deepseek-cloud-outlook">Copper Stocks On Shaky Ground, JPMorgan Analysts Say: Tariffs, DeepSeek Cloud Outlook</a>
Still, O'Kane notes that global macro forces—like a strengthening yuan and anticipation of U.S. metal tariffs—are helping keep LME copper elevated. With inventories at five-year lows, JPMorgan sees copper climbing to $10,400 per ton by the fourth quarter of 2025.
For investors looking to capitalize, United States Copper Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPER#NYSE">CPER</a>) and Global X Copper Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COPX#NYSE">COPX</a>) offer exposure to copper's momentum.
<h2 class="wp-block-heading">Iron Ore Rallies Amid Supply Disruptions</h2>
Iron ore prices have surged 10% since January to $105 per ton, fueled by cyclone-related supply hits in Western Australia. While steel rebar demand in China took a weather-related dip, steel production is running at the fastest pace since 2021. JPMorgan is watching China's annual National People's Congress (March 5) for potential policy support that could further boost steel and iron ore markets.
Investors eyeing the iron ore trade might look at VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and iShares MSCI Global Metals &amp; Mining Producers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PICK#NYSE">PICK</a>) for broad exposure.
<h2 class="wp-block-heading">Aluminium &amp; Zinc: Low Inventories, Limited Demand</h2>
Aluminium and zinc inventories are at multi-year lows, signaling tight supply. However, demand remains sluggish post-New Year, with aluminium inventories rising by 110kt last week. JPMorgan projects aluminium prices at $2,763 per ton for 2025, but stronger demand signals are needed for a sustained rally.
For those bullish on aluminium, iPath Series B Bloomberg Aluminum Subindex Total Return ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JJU#NYSE">JJU</a>) offers direct exposure.
<h2 class="wp-block-heading">Investors Await Next Big Move</h2>
China's metal markets are in flux—tight supplies and record-low inventories are colliding with sluggish post-holiday demand. 
JPMorgan's O'Kane sees China's upcoming policy moves as a key catalyst for the next leg in metal prices. 
With copper and iron ore already running hot, investors should keep an eye on ETFs like COPX, SLX, and PICK to position for the next big move.
Read Next: 
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<li><a href="https://www.benzinga.com/25/02/43492445/critical-metal-demand-to-triple-by-2030-but-demographics-pose-risks">Critical Metal Demand To Triple By 2030, But Demographics Pose Risks</a></li>
</ul>

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COPX

CPER

iPath DJ-UBS Aluminum Subindex Total Return ETN

PICK

China's Metal Markets Are Stirring - Here's What It Means for Commodity Investors

The latest round of tariffs on metal imports, announced by the Trump administration, is set to create significant investment opportunities in ETFs <a href="https://in.benzinga.com/25/02/43587918/donald-trumps-expected-tariffs-on-aluminum-steel-imports-may-impact-domestic-companies-heres-a-list-of-metal-etfs-that-could-be-affected">focused on U.S. steelmakers. </a>
With a 25% tariff now set to be imposed on all steel and aluminum imports, domestic steel producers are expected to gain market share and see rising profitability. A KeyBanc Capital Markets report shows how these tariffs could reshape the steel market, reducing finished steel imports by 14% year-over-year in 2025, primarily impacting sheet and plate steel. 
Analysts anticipate U.S. steel mills capturing market share previously held by foreign competitors, reinforcing the bullish outlook for U.S. steel companies-focused ETFs.
Three <a href="https://www.benzinga.com/etfs">standout ETFs</a> are VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>), SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>), and Global X U.S. Infrastructure Development ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/PAVE#BATS">PAVE</a>).
VanEck Steel ETF 
This is a direct play on the steel sector, offering concentrated exposure to leading steel manufacturers. With holdings in Nucor (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>), Cleveland-Cliffs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>), Steel Dynamics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), and United States Steel Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>), the fund is well-positioned to benefit from higher domestic steel prices.
The new tariffs are expected to curb foreign steel imports, which accounted for a substantial share of the U.S. market. This will increase demand for domestically produced steel, boosting revenue for companies within SLX&#8217;s portfolio.
As steel prices rise, profit margins for U.S. steel producers will expand, which might be a boost for stock valuations.
Also Read: <a href="https://in.benzinga.com/markets/equities/25/02/43613133/trumps-25-tarrifs-a-self-inflicted-wound-says-economist-amid-warnings-of-fewer-american-jobs-peter-schiff-says-youll-pay-more-for-cars-and-homes">Trump&#8217;s 25% Tarrifs A &#8216;Self-Inflicted Wound,&#8217; Says Economist Amid Warnings Of Fewer American Jobs — Peter Schiff Says You&#8217;ll Pay More For Cars And Homes</a>
SPDR S&amp;P Metals &amp; Mining ETF
XME provides broader exposure to the metals and mining sector but is still heavily weighted toward steel stocks like Steel Dynamics, Nucor and United States Steel Corp.
The tariff-induced price hikes on imported steel will force industries relying on metal, such as construction, automotive, and energy, to turn to U.S.-based suppliers. Steel Dynamics, Cleveland-Cliffs, and Nucor stand to gain from increased domestic sales, while higher scrap prices further support pricing power.
Global X U.S. Infrastructure Development ETF
PAVE is a more diversified play, offering exposure to the broader infrastructure sector, which is a major consumer of steel. Infrastructure companies like Trane Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TT#NYSE">TT</a>) and Eaton Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETN#NYSE">ETN</a>) are part of the ETF&#8217;s portfolio.
With increased steel demand for construction projects and infrastructure spending, U.S. steel producers will see long-term growth.
Supply And Demand Shift
KeyBanc projects U.S. real carbon steel demand to grow by around 2% in 2025 (compared to a 1-2% decline in 2024), supported by rebounds in oil &amp; gas, industrial, and construction sectors. Moreover, Hot Rolled Coil (HRC) prices are expected to rise from $750 per ton to $810 per ton in 2025, buoyed by tariff-driven demand shifts and rising scrap prices.
KeyBanc analysts also upgraded Steel Dynamics to Overweight, citing improved operational efficiencies and pricing tailwinds.
The Trump administration's aggressive trade stance is designed to protect U.S. steelmakers from cheap foreign imports. KeyBanc said that analysts anticipate a boost in domestic steel production, with sector utilization rising to 78% in 2025.
Earnings Growth for Steel Stocks
Steel Dynamics: KeyBanc raised the estimated 2025 EBITDA to $2.57 billion from $2.13 billion, driven by higher utilization and rising steel prices.
Cleveland-Cliffs: The research firm raised EBITDA expectation to $1.034 billion amid improved demand for U.S.-made steel.
Nucor: Holding a Sector Weight rating, NUE's diversified steel operations make it a stable long-term play.
Parting Thoughts
The tariffs are set to create a favorable market for domestic steelmakers, and ETFs with significant exposure to U.S. steel stocks stand to gain. With KeyBanc's bullish outlook on steel demand and pricing, the ETFs discussed in this piece could see substantial upside in the months ahead.
Read Next:<a href="https://www.benzinga.com/news/global/25/02/43635740/eu-president-vows-firm-and-proportionate-countermeasures-after-trump-imposes-steel-aluminum-tariffs"> </a>
<ul>
<li><a href="https://www.benzinga.com/news/global/25/02/43635740/eu-president-vows-firm-and-proportionate-countermeasures-after-trump-imposes-steel-aluminum-tariffs">EU President Vows &#8216;Firm And Proportionate Countermeasures&#8217; After Trump Imposes Steel, Aluminum Tariffs</a></li>
</ul>
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Trump's Metal Tariffs Set Stage For US Steel ETF Gains

European Commission President Ursula von der Leyen on Tuesday vowed "firm and proportionate countermeasures" in response to President Donald Trump's decision to impose 25% tariffs on steel <a href="https://www.benzinga.com/markets/forex/25/02/43617885/asia-markets-and-europe-mixed-gold-near-all-time-high-global-markets-today-while-us-slept">and aluminum imports.&nbsp;</a>
The Details: "Unjustified tariffs on the E.U. will not go unanswered — they will trigger firm and proportionate countermeasures," Von der Leyen said in a statement.
Von der Leyen did not detail which countermeasures are being considered, though it is expected that the E.U. will move<a href="https://www.benzinga.com/markets/equities/25/02/43613133/trumps-25-tarrifs-a-self-inflicted-wound-says-economist-amid-warnings-of-fewer-american-jobs-peter-schiff-says-youll-pay-more-for-cars-and-homes"> to protect</a> its domestic steel and aluminum industries.&nbsp;
Read Next: <a href="https://www.benzinga.com/news/earnings/25/02/43600652/super-micro-computer-q2-earnings-preview-accounting-updates-nasdaq-deadline-on-watch">Super Micro Computer Q2 Earnings Preview: Accounting Updates, Nasdaq Deadline On Watch&nbsp;</a>
Maroš Šefčovič, European Commissioner on trade and economic security, called Trump's tariffs "a lose-lose scenario" and that the "time has come" for Europe to respond.&nbsp;&nbsp;
"We are currently assessing the scope of the measures announced overnight and will be responding in a firm and proportionate way by counter measures," he told members of the European Parliament on Tuesday.&nbsp;
According to the U.S. Commerce Department, the U.S. imported approximately four million metric tons of steel and 283,000 metric tons of aluminum from Europe in 2022.
Stock To Watch: Shares of steel companies, including United States Steel Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>), Steel Dynamics, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NYSE">STLD</a>) and Nucor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>), have reacted positively to Trump's tariffs set to take effect in March.&nbsp;
Investors can also monitor the steel industry through the VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) which provides targeted exposure to the steel sector.
Shares of aluminum companies like Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) and Century Aluminum Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CENX#NYSE">CENX</a>)&nbsp; are gaining Tuesday as investors digest the news.&nbsp;
Century Aluminum released <a href="https://www.benzinga.com/pressreleases/25/02/g43611888/century-aluminum-applauds-president-trumps-decisive-action-to-strengthen-section-232-tariffs">a statement</a> on Monday in support of the new tariff structure.&nbsp;
"Today's executive order implements a 25% tariff on all primary aluminum imports into the U.S. from all foreign countries and closes a loophole in the existing tariff that allowed nearly 75% of imports to avoid the tariff," the company said. 
"Closing these loopholes will protect good American jobs and our national security."
Read Next:
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<li><a href="https://www.benzinga.com/general/social-media/25/02/43535256/palantir-adds-elon-musks-ai-chatbot-grok-to-aip">Palantir Adds Elon Musk&#8217;s AI Chatbot Grok To AIP</a></li>
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Image: Shutterstock

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EU President Vows 'Firm And Proportionate Countermeasures' After Trump Imposes Steel, Aluminum Tariffs

President Donald Trump announced on Sunday that he will impose new 25% <a href="https://www.benzinga.com/markets/equities/25/02/43583123/trump-to-announce-25-steel-and-aluminum-tariffs-economist-warns-president-is-making-us-manufacturing-globally-uncompetitive">tariffs</a> on all steel and aluminum imports, adding to existing duties, in a further escalation of his trade policy. While this could impact domestic steel and aluminum companies, investors can consider the following list of exchange-traded funds (ETFs) to trade following the development.
What Happened: On his way to the NFL Super Bowl in New Orleans, Trump spoke to reporters on Air Force One, and said he would reveal the <a href="https://www.benzinga.com/markets/equities/25/02/43583123/trump-to-announce-25-steel-and-aluminum-tariffs-economist-warns-president-is-making-us-manufacturing-globally-uncompetitive">new tariffs</a> on Monday, followed by reciprocal tariffs on Tuesday or Wednesday, matching the rates imposed by other countries.
Tariffs impact domestic companies by influencing costs, competitiveness, and supply chains
According to a report by the First National Bank of Omaha and the think tank Council on Foreign Relations, the negative effects of tariffs include increased input costs, reduced competitiveness, disruption in supply chains, retaliation, diversion in investment, and reduced consumer spending. On the positive side, tariffs may temporarily protect domestic industries and generate government revenue.
Investors should look out for the following metal ETFs as Trump is likely to impose tariffs on imports.
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<table>
<tbody>
<tr>
<td>Fund Name</td>
<td>AUM</td>
<td>Expense Ratio</td>
<td>Six Month Returns</td>
</tr>
<tr>
<td>VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>)</td>
<td>$75.23 million</td>
<td>0.56%</td>
<td>-4.88%</td>
</tr>
<tr>
<td>Invesco DB Base Metals Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBB#NYSE">DBB</a>)</td>
<td>$112.4 million</td>
<td>0.79%</td>
<td>2.39%</td>
</tr>
<tr>
<td>iShares U.S. Basic Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYM#NYSE">IYM</a>)</td>
<td>$534.51 million</td>
<td>0.39%</td>
<td>-0.68%</td>
</tr>
<tr>
<td>SPDR S&amp;P Metals and Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>)</td>
<td>$1623.5 million</td>
<td>0.35%</td>
<td>5.00%</td>
</tr>
</tbody>
</table>
</figure>
Iron ore, a key ingredient in steelmaking, saw its prices rise 0.71% in Singapore around 3:43 p.m. local time, while aluminum futures on the Comex gained 0.49%.
See Also: <a href="https://www.benzinga.com/markets/equities/25/02/43583123/trump-to-announce-25-steel-and-aluminum-tariffs-economist-warns-president-is-making-us-manufacturing-globally-uncompetitive">Trump To Announce 25% Steel And Aluminum Tariffs — Economist Warns President Is &#8216;Making US Manufacturing Globally Uncompetitive&#8217;</a> 
Why It Matters: Although Trump initially paused tariffs on Canada and Mexico, he has renewed threats by specifically targeting metals in his media interactions on Sunday.
According to the American Iron and Steel Institute&#8217;s January <a href="https://www.steel.org/2025/02/aisi-releases-january-sima-imports-data-4/">data</a>, the U.S. gets most of its imported steel from Canada, Brazil, and Mexico, followed by South Korea and Vietnam. 
&#8220;Canadian steel and aluminum support key industries in the U.S., from defence, shipbuilding, and auto,&#8221; said the Canadian Minister of Innovation, Science and Industry, Francois-Philippe Champagne, in an X post.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Let's all be clear. Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto. This is making North America more competitive and secure. We will continue to stand up for Canada, our workers, and our industries. <a href="https://t.co/NBFeU6Y8zN">pic.twitter.com/NBFeU6Y8zN</a>
&mdash; François-Philippe Champagne (FPC) &#x1f1e8;&#x1f1e6; (@FP_Champagne) <a href="https://twitter.com/FP_Champagne/status/1888754195727106310?ref_src=twsrc%5Etfw">February 10, 2025</a></blockquote>
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Citing the risks of these metal tariffs, Joseph Brusuelas, the principal and chief economist at RSM US said that other countries could follow to protect their economies, and a much larger trade war could ensue after these impositions by Trump.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">US-China Trade War: With Trump set to announce 25% tariffs on aluminum &amp; steel imports and the Chinese imposing $14 billion on trade taxes on U.S. good it is likely that a series of tit-for-tat retaliation has begun. A look at relative yield differentials between the US and… <a href="https://t.co/ACWRKgzlmg">pic.twitter.com/ACWRKgzlmg</a>
&mdash; Joseph Brusuelas (@joebrusuelas) <a href="https://twitter.com/joebrusuelas/status/1888728283392667924?ref_src=twsrc%5Etfw">February 9, 2025</a></blockquote>
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Read Next:
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<li><a href="https://www.benzinga.com/general/market-summary/25/02/43521806/deepseeks-hedge-fund-owner-had-multiple-top-projects-before-creating-the-firm-that-fueled-1-trillion-market-cap-erosion-of-ai-stocks">DeepSeek&#8217;s Hedge Fund Owner Had Multiple Top Projects Before Creating The Firm That Fueled $1 Trillion Market Cap Erosion Of AI Stocks</a></li>
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Donald Trump's Expected Tariffs On Aluminum, Steel Imports May Impact Domestic Companies: Here's A List Of Metal ETFs That Could Be Affected

Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>) shares are trading lower Monday after the<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43431003/cleveland-cliffs-provides-preliminary-fourth-quarter-and-full-year-2024-results" rel="noreferrer noopener"> company reported preliminary results</a>.
For the fourth quarter of 2024, Cleveland-Cliffs expects steel shipments of 3.8 million net tons, with revenues of around $4.30 billion <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">(vs. consensus of $4.49 billion)</a>.
Also, the company anticipates an adjusted EBITDA loss of about $85 million in the quarter.
For 2024, steel shipments are expected to reach 15.6 million net tons, with revenues around $19.2 billion (vs. street view of $19.37 billion) and adjusted EBITDA of around $775 million.
<a href="https://www.benzinga.com//node/41690362">Including Stelco</a>, the pro-forma adjusted EBITDA for 2024 is expected to be about $1.2 billion.
Cleveland-Cliffs attributed its weaker results, particularly in fourth-quarter, to subdued demand from the North American automotive sector.
Lourenco Goncalves, Cliffs&#8217; Chairman, President, and CEO, said, &#8221;So far into this new year, we have already seen improvements in our order book, both automotive and non-automotive, and are confident that the manufacturing-friendly items on President Trump&#8217;s agenda will have an outsized benefit on Cleveland-Cliffs.&#8221;
&#8221;This includes the recently announced tariffs on Mexico, Canada, and China and the expectation that there is more to come on steel specifically. Stelco has been a major contributor since day 1 and a substantial portion of our expected synergies are already in motion. Based on their experience in 2018, we expect Stelco will benefit from steel tariffs as well. We look forward to the success in 2025 that all of these developments will ultimately bring.&#8221;
&#8220;We applaud President Trump for taking decisive action on tariffs. Cleveland-Cliffs is a firm believer in the long-term positive impact that tariffs can play to make America a manufacturing superpower once again.&#8221;
Apart from this, Cleveland-Cliffs disclosed its intention to offer $750 million in Senior Guaranteed Notes due 2031, subject to market <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/b43431022/cleveland-cliffs-inc-announces-proposed-offering-of-750-million-of-senior-unsecured-guaranteed-not" rel="noreferrer noopener">conditions and other factors</a>.
The company plans to use the net proceeds for general corporate purposes, which includes the repayment of borrowings under its asset-based credit facility.
The company plans to release fourth-quarter and full-year 2024 earnings <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">results on February 24, 2025</a>.
Investors can gain exposure to the stock via SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) and VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>).
Price Action: CLF shares are down 2.64% at $9.97 at the last check Monday.
Read Next:
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</ul>
Photo: Vladimir Mulder/Shutterstock.com.

Mid Cap

Cleveland-Cliffs Predicts Q4 Revenue Miss & EBITDA Loss, CEO Applauds Trump's Tariffs For 2025 Boost

GLJ Research analyst Gordon L. Johnson II upgraded Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>) to Buy from Sell rating with <a href="https://www.benzinga.com/quote/clf/analyst-ratings" target="_blank" rel="noreferrer noopener">a price forecast of $14.27</a>.
The analyst notes the U.S. economy is in worse shape than many acknowledge. With Donald Trump set to take office on January 20, 2025, and his pro-tariff policies likely impacting sectors like steel, the analyst foresee a potential rise in U.S. HRC prices in the near term.
In particular, the analyst says that following Trump&#8217;s win (November 2016), and Joe Biden&#8217;s win (November 2020), U.S. HRC spot prices rose by +25.5% and +65.9%, respectively, three months out. However, since Trump&#8217;s win on November 5, 2024, U.S. HRC spot prices have declined by 6.9%.
Also, the positive seasonality typically seen in the U.S. steel sector from January to April, and CLF&#8217;s stock performance in particular, raises the question: &#8220;Is now an opportune time to dip one&#8217;s feet back into the &#8216;long-U.S.-
steel-stocks pool&#8217;?&#8221; adds the analyst.
Notably, Johnson II states that from the month Trump was first elected to the month he lost to Biden, U.S. steel imports fell by a significant -51.1%, from 2.5 million tons to 1.2 million tons. This decline is often attributed to Trump&#8217;s pro-U.S. steel policies.
Incorporating Stelco&#8217;s additional tons into CLF&#8217;s 2025 estimated output, and assuming U.S. HRC prices rise to $900/ton in May 2025 before falling to $705/ton by July, the analyst estimate CLF&#8217;s 2025 aggregated steel price to be $1,055/ton, slightly higher than the consensus estimate of $1,050.22/ton.
For 2026, Johnson II forecast an average price of $1,068/ton, reflecting a +1.2% year-over-year increase, vs. the consensus estimate of $1,084.42/ton.
Consequently, the analyst project 2025 adjusted EBITDA and adjusted EPS of $945 million and -$0.56, respectively, vs. consensus estimates of $1.32 billion and -$0.09.
In 2026, the analyst expects adjusted EBITDA and adjusted EPS of $1.804 billion and $1.06, respectively, while the consensus estimates are $1.884 million and $0.69.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>).
Price Action: CLF shares are up 1.26% at $10.03 at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/news/global/25/01/42825094/us-steel-nippon-steel-sue-biden-administration-cleveland-cliffs-union-in-response-to-blocked-merger" target="_blank" rel="noreferrer noopener">US Steel, Nippon Steel Sue Biden Administration, Cleveland-Cliffs, Union In Response To Blocked Merger</a></li>
</ul>
Photo by QinJin on Shutterstock.

Upgrades

Price Target

Analyst Sees US Steel Price Rebound Under Trump's Pro-Tariff Stance, Upgrades Cleveland-Cliffs Stock

Nucor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) shares are trading lower premarket today. On Monday, the company provided fourth-quarter guidance, expecting EPS of <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42519618/nucor-announces-guidance-for-the-fourth-quarter-of-2024-earnings" rel="noreferrer noopener">$0.55 &#8211; $0.65 vs. the consensus of $0.86</a>.
The primary factor driving the expected earnings decline is lower earnings in the steel mills segment due to decreased<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> volumes and lower average selling prices</a>.
The company projects earnings in the steel products segment to decline, reflecting the same trends. However, the raw materials segment is anticipated to see an increase in earnings, excluding the impairment charge from the third quarter of 2024.
Nucor reported net earnings of&nbsp;$1.05&nbsp;per share in the&nbsp;third quarter&nbsp;of 2024 and&nbsp;$3.16&nbsp;per share in the&nbsp;fourth quarter&nbsp;of 2023.
Notably, during the <a target="_blank" href="https://www.benzinga.com//node/41439525" rel="noreferrer noopener">third-quarter earnings release</a>, Nucor stated that it expects the fourth quarter&nbsp;earnings per share to decrease compared to $1.05&nbsp;reported for the&nbsp;third quarter amid decreased steel mill segment earnings caused by lower average selling prices and decreased volumes.
In the fourth quarter, Nucor repurchased around 2.1 million shares at an average price of $149.81 per share, bringing the total year-to-date repurchases to 13.1 million shares at an average price of $168.75 per share.
Nucor has returned over $2.73 billion to stockholders through share repurchases and dividend payments so far this year.
In October, the company reported quarterly adjusted earnings of $1.49 per share, which beat the analyst consensus estimate of $1.47 and revenue of $7.44 billion, which beat the analyst consensus estimate of $7.28 billion.
Nucor plans to release its fourth-quarter results on&nbsp;Monday, January 27, 2025.
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>)&nbsp;and First Trust Materials AlphaDEX Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXZ#NYSE">FXZ</a>).
Price Action: NUE shares are down 1.51% at $122.29 premarket at the last check Tuesday.
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</ul>

Nucor's Q4 Guidance Misses The Mark, Hit By Steel Slowdown; Stock Slides

Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) shares are trading relatively flat in the <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">premarket session on Wednesday.</a>
The company announced today that it renewed its multi-year enterprise agreement with the mining giant Rio Tinto Plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>), extending the partnership <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/b41933059/palantir-and-rio-tinto-renew-enterprise-contract-and-extend-access-to-palantirs-ai-platform" rel="noreferrer noopener">for an additional four years</a>.
This agreement ensures Rio Tinto&#8217;s continued access to Palantir&#8217;s Artificial Intelligence Platform (AIP), further enhancing the company&#8217;s operational efficiency and AI capabilities.
As an early adopter of Palantir Foundry, Rio Tinto has already built a robust digital twin, or &#8220;Ontology,&#8221; which serves as a unified data model for critical operations.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/11/41891026/palantir-overtakes-lockheed-martin-in-market-cap-how-does-the-messi-of-ai-stack-up-against-the-traditional-defense-player" rel="noreferrer noopener">Palantir Overtakes Lockheed Martin In Market Cap, How Does The &#8216;Messi Of AI&#8217; Stack Up Against The Traditional Defense Player</a>
The Ontology enables Rio Tinto to leverage AIP to rapidly develop, test, and deploy AI-driven solutions, addressing challenges in areas like plant operations, geotechnical risk management, and the coordination of unmanned trains.
&#8220;The Foundry Ontology has made our structured data accessible, and AIP is doing the same for our unstructured data while enabling us to attack with pace problems previously deemed too complex,&#8221;&nbsp;said Bold Bataar, Rio Tinto&#8217;s Chief Commercial Officer.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, RIO stock has lost over 6% in the past year. Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and&nbsp;Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GABF#NYSE">GABF</a>) and VanEck Natural Resources ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAP#NYSE">HAP</a>).
For instance, in Western Australia&#8217;s Pilbara region, Foundry integrates real-time data from hundreds of systems, allowing operators to optimize the routing of 53 driverless trains transporting iron ore. This has led to improved safety and throughput on the rail network.
Meanwhile, in Mongolia&#8217;s Oyu Tolgoi mine, the Ontology provides dynamic risk management for one of the world&#8217;s most challenging mining environments.
Palantir&#8217;s AIP will enhance Rio Tinto&#8217;s ability to manage complex workflows and accelerate innovation across its operations. Both companies expect the AI platform to drive continued improvements in performance, safety, and decision-making in Rio Tinto&#8217;s high-stakes environments.
Ted Mabrey, Palantir&#8217;s Head of Commercial, highlighted the potential of AIP to address Rio Tinto&#8217;s most pressing challenges, including risk identification and asset management, ensuring safe and efficient AI deployment.
PLTR stock has gained over 200% in the past year. Investors can gain exposure to the stock via REX AI Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIPI#NASDAQ">AIPI</a>) and Global X Funds Global X Defense Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHLD#NYSE">SHLD</a>).
Price Action: PLTR shares are trading higher by 1.02% to $60.46 premarket at last check Wednesday, whie RIO shares are trading lower by 0.46% to $60.92.
Image via Shutterstock
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41862517/as-tesla-market-capitalization-soars-past-1-trillion-dan-ives-calls-musks-trump-bet-poker-move-for-the-ages-gene-munster-say-it-is-more-than-just-a-meme-stock?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">As Tesla Market Capitalization Soars Past $1 Trillion, Dan Ives Calls Musk&#8217;s Trump Bet&#8217; Poker Move For The Ages: Gene Munster Say It Is &#8216;More Than Just A Meme Stock&#8217;</a></li>
</ul>

Contracts

General

AIPI

Gabelli ETFs Trust Gabelli Financial Services Opportunities ETF

GABF

Market Vectors RVE Hard Assets Producers ETF

PLTR

SHLD

What's Going On With Palantir Stock After Renewing Collaboration With Rio Tinto?

Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>) shares are trading lower on Tuesday following weak third-quarter <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41730393/cleveland-cliffs-q3-earnings-revenue-eps-miss-on-weaker-demand-and-pricing-shares-slide" rel="noreferrer noopener">results reported on Tuesday</a>.
The company reported third-quarter revenue of&nbsp;$4.57 billion, versus&nbsp;estimates&nbsp;of $4.77 billion, and adjusted loss per share of $0.33, versus estimates for a loss of $0.27.
Cleveland-Cliffs lowered its capital expenditures outlook for full year 2024 from a range of $650 million to $700 million to a new range of<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> $600 million to $650 million</a>.
In the earnings press release, the company said Stelco&#8217;s assets are well-capitalized, and it expects to benefit from the company&#8217;s cost advantages and strong business model on day one. Cleveland-Cliffs noted Stelco&#8217;s business has &#8220;virtually no exposure&#8221; to the automotive sector.&nbsp;
B Riley Securities analyst Lucas N. Pipes says that based on management&#8217;s earlier comments, they previously projected $985 million for 2025 and anticipate insights on the significant reductions.
The analyst adds that Cliffs&#8217; acquisition of Stelco was finalized on November 1, and they are eager to hear management&#8217;s thoughts on the integration process, potential synergies, debt reduction, and product mix.
Also, the analyst anticipates updated insights from management regarding the timeline for the integration process of the Stelco acquisition and the complete realization of the <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39770873/cleveland-cliffs-doubles-down-on-steel-with-2-5b-acquisition-expects-120m-in-annual-savings" rel="noreferrer noopener">$120 million in cost synergies</a>.
The analyst maintains the <a href="https://www.benzinga.com/quote/CLF/analyst-ratings">Buy rating and $21 price forecast.</a>
KeyBanc Capital Markets analyst Philip Gibbs writes that Cleveland-Cliffs reported EBITDA of $124 million for the quarter, compared to their estimate of $134 million. The slight shortfall in steel volumes appears to be linked to adjustments in automotive production and inventory.
Investors can gain exposure to the stock via&nbsp;SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) and&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>).
Price Action: CLF shares are down 10.3% at $11.76 at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/markets/esg/24/11/41722922/trump-vs-harris-evgo-cleveland-cliffs-plug-power-nucor-brace-for-2024-election-impact" target="_blank" rel="noreferrer noopener">Trump Vs. Harris: EVgo, Cleveland-Cliffs, Plug Power, Nucor Brace For 2024 Election Impact</a></li>
</ul>

Reiteration

Cleveland-Cliffs' Q3 Shortfall Linked To Automotive Adjustments; Analysts Await Stelco Integration Insights

The US asked Group of Seven allies to consider sanctions on Russian palladium and titanium, a person familiar with the matter said, as the Biden administration mulls fresh ways to squeeze President Vladimir Putin's war machine.
<a href="https://www.bloomberg.com/news/articles/2024-10-23/us-asks-g-7-to-consider-sanctions-on-russian-palladium-titanium" title="https://www.bloomberg.com/news/articles/2024-10-23/us-asks-g-7-to-consider-sanctions-on-russian-palladium-titanium">https://www.bloomberg.com/news/articles/2024-10-23/us-asks-g-7-to-consider-sanctions-on-russian-palladium-titanium</a>

PALL

'US Asks G-7 to Consider Sanctions on Russian Palladium, Titanium' - Bloomberg

United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>) are down over 16% since Wednesday morning after the Biden administration <a href="https://www.benzinga.com/m-a/24/09/40724057/biden-administration-reportedly-warns-nippon-steels-14-9b-acquisition-of-us-steel-poses-national-sec">expressed intentions to block Nippon Steel Corporation</a>'s $14.9-billion acquisition of the American company. 
This has been referred to as a national security concern by President Joe Biden, who is reportedly awaiting the results of a Treasury review that would grant him power to execute the restriction.
The Washington, D.C. holdup of the M&amp;A deal is being called politically motivated by one senior Japanese official, who sees it as a way to earn voters in the battleground state of Pennsylvania, where the company is headquartered.
A former member of the Committee on Foreign Investment, which is the council reviewing national security concerns, says the national security concerns are nowhere to be found, and dropping the deal would actually hurt the economy.
Jefferies maintained a Buy rating on U.S. Steel Thursday and dropped its price target from $47 to $41, according to data from Benzinga Pro.
<h3 class="wp-block-heading">US Steel Deal Not A &#8216;National Security Risk,&#8217; Says Former White House Economist</h3>
The deal would put the Pittsburgh-based steel producer, which is the country's second largest, in the hands of Japan's biggest steelmaker. The acquisition was approved by U.S. Steel shareholders in April. 
U.S. Steel CEO David Burritt has said the company could <a href="https://www.benzinga.com//node/40705949">shut down its steel mills and leave Pittsburgh</a> as its home base if the deal is shut down, which would include the loss of U.S. jobs.
While the issue has become largely politicized in the context of the election year, some pundits disagree with the argument that losing U.S. ownership of the company would signify a national security risk.
"Nothing I see in the public domain makes me think this is a national security risk," said Matthew Slaughter, Dartmouth's Tuck School of Business dean, in an <a href="https://www.youtube.com/watch?v=ClIe2yqNR_E">interview</a> with CNBC.
Slaughter served on the White House Council of Economic Advisers and was part of CIFUS, the body reviewing national security concerns for the Treasury.
Japan is one of the U.S.'s strongest allies and Nippon Steel has been operating in the country since the 1980s, Slaughter said. Nippon Steel has expressed that it would keep U.S. management on the payroll making key decisions in order to accommodate the deal.
The Japanese steel behemoth has committed to a $2.7-billion investment in U.S. Steel, most of which the company needs to continue its operations and realize further expansions.
"Essential to national security is economic security," said Slaughter, who argues the deal should go through.
It has long been the case that engagement with the global economy through these types of foreign investments "has been a major contributor to the economic strength and dynamism of America," he said.
This dynamism ultimately feeds into the "good jobs that everyone seems to be rightly concerned about,&#8221; Slaughter said. 
"We've got to find mechanisms other than building more walls, to address those legitimate concerns," he said.
In his view, the Nippon-U.S. Steel deal looks "quite unlikely." 
Read Also: <a href="https://www.benzinga.com//node/40737312">S&amp;P 500 Falls Below 5,500 Points On Cooling Jobs Data, Tesla Leads Tech Gains, Natural Gas Spikes: What&#8217;s Driving Markets Thursday?</a>
<h3 class="wp-block-heading">Are Politics Behind Biden's Decision?</h3>
Both presidential nominees — Kamala Harris and Donald Trump — have said they believe U.S. Steel should remain U.S.-owned.
The company is headquartered in the battleground state of Pennsylvania, where Harris and Trump are tied in the polls. 
The United Steelworkers union has expressed opposition to the deal, Reuters reported in April.&nbsp;
U.S. Steel workers don't necessarily agree. Hundreds of employees rallied at the U.S. Steel Tower in Pittsburgh to support the Nippon Steel transaction, WTAE-TV Pittsburgh <a href="https://www.youtube.com/watch?v=Vtk2TVcf1LU">reported</a>.
Speaking to reporters in North Carolina on Thursday, Treasury Secretary Janet Yellen said the final decision on foreign acquisitions remains with Biden, and declined further comment, Reuters reports.
Japan's Digital Transformation Minister Taro Kono referred to the blockade as politically motivated.
"I think they're looking for labor union votes ahead of the U.S. presidential race," he said on Thursday.
Kono could soon become Japan's new prime minister as he runs to replace PM Fumio Kishida as his party's leader in elections next month.
The government shouldn't "arbitrarily intervene in a single case," he said, as <a href="https://www.japantimes.co.jp/business/2024/09/05/companies/us-steel-deal-nixed/">quoted</a> by The Japan Times.
Investors were warded off by news of the blockade, resulting in a sell-off of U.S. Steel stock.
Analysts at Jefferies continue to see value in the stock. While the price target was reduced to $41, analyst Christopher LeFemina said he expects a premium of almost 40% in the year stemming from today's sell-off.
The VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) rose 0.2% on Thursday and is down 5% in the last five trading days.
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</ul>
Image courtesy of U.S. Steel.

Regulations

Biden's Expected Veto Of US Steel Deal Is Hunt For 'Labor Union Votes,' Says Top Japan Official

Rio Tinto Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) shares are trading higher today. The company inked a global cooperation agreement with construction equipment manufacturer XCMG Machinery for over $<a href="https://www.prnewswire.com/news-releases/xcmg-and-rio-tinto-forge-new-partnership-for-world-class-simandou-iron-ore-project-302227445.html" target="_blank" rel="noreferrer noopener">110</a> million.
The deal includes the supply of essential mining equipment for the Simandou iron ore project in Guinea, a notable untapped high-grade iron ore reserve.
Located in southeastern Guinea, Simandou holds some of the highest-grade iron ore globally, making it crucial in international mineral markets.
The contract covers over 34 units of 230-ton mining trucks, large mining graders with 350 and 550 horsepower, ancillary equipment, and large production loaders and excavators.
Liu Jiansen, Vice President of XCMG Machinery, said, &#8220;This marks a new beginning of high-level friendly cooperation between XCMG and Rio Tinto and further demonstrates our leading technology and innovation capabilities in the field of heavy mining equipment.&#8221;
Aboubacar Koulibaly, Head of Rio Tinto Guinée, stated, &#8220;The Simandou project can be a key driver of growth in Guinea – catalyzing a new wave of investment, building the country&#8217;s entrepreneurial fabric and supporting development across the country.&#8221;
In July, Rio Tinto reported a 2% Y/Y decrease in iron ore production to 79.5 million tonnes (67.5 million tonnes for Rio Tinto)<a href="https://www.benzinga.com/markets/equities/24/07/39798491/why-rio-tinto-shares-are-diving-today" target="_blank" rel="noreferrer noopener"> due to a mid-May train collision</a>. Rio Tinto reiterated its full year outlook for production at Pilbara Iron ore<a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener"> of 323 to 338 million tonnes</a>.
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and&nbsp;NEOS ETF Trust Mast Global Battery Recycling &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EV#NYSE">EV</a>).
Price Action: RIO shares are up 1.97% at $63.22 at the last check Wednesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Rio Tinto And XCMG Team Up In $110M Equipment Deal For Guinea's Iron Treasure: Details

Nucor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) shares are trading lower today. Yesterday, the company reported better-than-expected&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39894662/nucor-shares-climb-following-q2-results-what-to-know" rel="noreferrer noopener">second-quarter financial results</a>.
Nucor reported quarterly earnings of $2.68 per share, which beat the analyst consensus estimate of $2.35 by 14.04%. Quarterly sales came in at $8.08 billion, which beat the analyst <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39335851/whats-going-on-with-nucor-corp-stock-on-friday" rel="noreferrer noopener">consensus estimate of $7.69 billion by 5.13%</a>.
Nucor anticipates a decline in third-quarter 2024 earnings compared to the second quarter, primarily due to lower average selling prices <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">impacting the steel mills segment</a>.
KeyBanc Capital Markets analyst Philip Gibbs says that 3Q24 guidance suggests weaker earnings in Steel Products and <a target="_blank" href="https://www.benzinga.com/quote/nue/analyst-ratings" rel="noreferrer noopener">Raw Materials than his current model</a>.
The analyst notes that NUE&#8217;s average realized carbon sheet pricing/mix in 2024 remained above $1,000/t, compared to the current HRC spot price of ~$650/t and tandem product base prices of ~$875-$975/t (with NUE&#8217;s mix being roughly 50% HRC).
The analyst writes that this suggests NUE was shipping from a strong backlog. Additionally, the average realized plate pricing/mix exceeded $1,300/t, while the current baseline index pricing is $1,000-$1,050/t.
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>)&nbsp;and Carbon Collective Climate Solutions U.S. Equity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CCSO#NASDAQ">CCSO</a>).
Price Action: NUE shares are down 0.97% at $161.75 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Courtesy of Nucor Corporation

CCSO

Nucor's Q2 Earnings Beat Expectations, But Analyst Warns of Weaker Q3 Due to Lower Steel Prices

Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>) shares are trading higher today after the company reported financial results <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39893870/cleveland-cliffs-reports-mixed-q2-earnings-investors-focus-on-strong-free-cash-flow-generation-cont" rel="noreferrer noopener">for the second quarter yesterday</a>.
The company reported revenue of $5.09 billion, missing the&nbsp;consensus estimate of $5.20 billion, according to&nbsp;<a target="_blank" href="https://benzinga.grsm.io/gxjhpowx7zks" rel="noreferrer noopener">Benzinga Pro</a>. The company reported breakeven adjusted earnings, beating analyst estimates for a loss of 2 cents per share.
Cleveland-Cliffs lowered its full-year 2024 expected capital expenditures range from a range of $675 million&nbsp;to&nbsp;$725 million to a new range of <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$650&nbsp;million to&nbsp;$700 million</a>.
The company also noted that its year-over-year steel unit cost reduction objective of approximately&nbsp;$30&nbsp;per net ton remains on track.
KeyBanc Capital Markets analyst Philip Gibbs writes that Steel volumes of ~4.0Mt matched their model, but pricing/mix exceeded expectations by $9/ton or <a target="_blank" href="https://www.benzinga.com/quote/Clf/analyst-ratings" rel="noreferrer noopener">$35 million (down ~$50/t q/q)</a>.
He further adds that core SG&amp;A/opex was notably low at ~$103 million (+$47 million vs. their model), decreasing $29 million q/q and $46 million y/y.
Last week, Cleveland-Cliffs entered into a definitive agreement to acquire&nbsp;Stelco Holdings Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/STZHF#OTC">STZHF</a>) for a total enterprise&nbsp;value of <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39770873/cleveland-cliffs-doubles-down-on-steel-with-2-5b-acquisition-expects-120m-in-annual-savings" rel="noreferrer noopener">around&nbsp;$2.5 billion (CAD3.4 billion)</a>.
The deal is expected to boost CLF&#8217;s EPS for 2024 and 2025, with $120 million in annual cost savings anticipated.
Investors can gain exposure to the stock via&nbsp;SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>) and&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>).
Price Action: CLF shares are up 4% at $15.82 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by christopher-burns- for Unsplash

STZHF

What's Going On With Cleveland-Cliffs Shares Today?

Rio Tinto Group&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) shares are trading lower today after the company disclosed <a target="_blank" href="https://www.riotinto.com/en/invest/financial-news-performance/production" rel="noreferrer noopener">second</a>-quarter production results.
The company reported production of 79.5 million tonnes (67.5 million tonnes for Rio Tinto), a decrease of 2% Y/Y, attributed to a mid-May train collision that disrupted rail capacity for about six days and led to full stockpiles at some mines.
Bauxite production increased to 14.7 million tonnes, up 9% from last year, driven by improved utilization and feed rates at Weipa, aligning with the company&#8217;s full-year guidance <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">to the upper end of 53 to 56 million tonnes.</a>
Outlook: Rio Tinto reiterated outlook for production at Pilbara Iron ore of 323 to 338 million tonnes.
Rio Tinto Chief Executive Jakob Stausholm said: &#8220;Our operational performance continues to progress. While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business following the roll-out of the Safe Production System.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39590764/rio-tinto-scrambles-to-avoid-repeat-strike-at-mongolian-mine-report" rel="noreferrer noopener">Rio Tinto Scrambles to Avoid Repeat Strike at Mongolian Mine: Report</a>
&#8220;We continue to prioritise the decarbonisation of our business, announcing the installation of carbon free aluminium smelting cells using ELYSIS technology at our Arvida smelter in Quebec and an investment in a R&amp;D facility to test our low-carbon ironmaking process, BioIron, in Western Australia. We also signed 20-year electricity arrangements backed by renewable electricity to secure the future of the Tiwai Point aluminium smelter in New Zealand.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39769271/australias-ngarluma-country-shines-bright-solar-project-aims-to-slash-rio-tintos-co2-footprint" rel="noreferrer noopener">Australia&#8217;s Ngarluma Country Shines Bright: Solar Project Aims to Slash Rio Tinto&#8217;s CO2 Footprint</a>
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and&nbsp;NEOS ETF Trust Mast Global Battery Recycling &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EV#NYSE">EV</a>).
Price Action: RIO shares are down 2.4% at $65.92 at the last check Tuesday.
Photo via Shutterstock

Why Rio Tinto Shares Are Diving Today?

Rio Tinto Group&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) and Ngarluma Aboriginal Corporation (NAC) have agreed to jointly develop an 80MW solar farm on Ngarluma Country near <a target="_blank" href="https://www.riotinto.com/en/news/releases/2024/ngarluma-and-rio-tinto-to-progress-renewable-energy-project" rel="noreferrer noopener">Karratha</a>.
The solar farm is the first project the Ngarluma people and Rio Tinto will pursue following a memorandum of understanding to explore renewable energy opportunities on Ngarluma Country.
The project, adjacent to Rio Tinto&#8217;s Yurralyi Maya Power Station near Karratha, could displace up to 11% of natural gas used for generation, reducing Rio Tinto&#8217;s emissions by up to 120kT CO2e annually.
This project aims to supply renewable energy to Rio Tinto&#8217;s iron ore operations in the Pilbara region of Western Australia.
The company expects the feasibility study by early 2025, with commissioning planned for 2027, pending approvals and final investment decision.
By 2030, Rio Tinto aims to deploy 600MW to 700MW of renewable energy to largely replace gas in its Pilbara power network, with additional capacity needed for future fleet electrification.
Read: <a target="_blank" href="https://www.benzinga.com/news/large-cap/24/06/39155495/rio-tinto-invests-143m-in-low-emission-steel-research-and-development" rel="noreferrer noopener">Rio Tinto Invests $143M in Low-Emission Steel Research And Development</a>
Ngarluma Aboriginal Corporation CEO Ljuba Mojovic said, &#8220;We&#8217;re fortunate to embark on our first renewable energy project with Rio Tinto to reduce emissions and to create economic opportunities for the Ngarluma People.&#8221;
&#8220;The Solar farm project will enable NAC to realise sustainable revenues, increase contracting opportunities and contribute to a positive environmental impact in the Pilbara.&#8221;
Earlier this month, Rio Tinto stated that it reportedly&nbsp;is&nbsp;in negotiations with workers at its Oyu Tolgoi copper operations in Mongolia to <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39590764/rio-tinto-scrambles-to-avoid-repeat-strike-at-mongolian-mine-report" rel="noreferrer noopener">prevent further industrial action</a>.
Investors can gain exposure to the stock via&nbsp;VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and&nbsp;NEOS ETF Trust Mast Global Battery Recycling &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EV#NYSE">EV</a>).
Also Read:<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/06/39357247/rio-tinto-to-initiate-largest-european-lithium-project-by-2028" rel="noreferrer noopener">&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/large-cap/24/06/39357247/rio-tinto-to-initiate-largest-european-lithium-project-by-2028" rel="noreferrer noopener">Rio Tinto To Initiate Largest European Lithium Project By 2028</a>
Price Action: RIO shares are trading lower by 0.86% at $67.93 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Australia's Ngarluma Country Shines Bright: Solar Project Aims to Slash Rio Tinto's CO2 Footprint

Rio Tinto Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RIO#NYSE">RIO</a>) is reportedly in negotiations with workers at its Oyu Tolgoi copper operations in Mongolia to prevent further industrial action.
The move follows a previous strike in May, prompted by a significant wage reduction, reported Reuters.
Notably, changes to Mongolia&#8217;s Labor Law, effective from the beginning of 2022, led Rio Tinto to recalculate employee allowances.
According to the non-governmental organization OT Watch, which is in contact with the mine workers, wages have decreased by up to 80%.
OT Watch Director Sukhgerel Dugersuren told Reuters, &#8220;A request to start negotiations was sent and OT is to reply by July 5, 2024. Another strike is possible if 70% of key demands on wages and 50% of other demands are not met.&#8221;
&#8220;The key demand of workers is to bring wages to similar levels paid for the same type of work performed in other Rio Tinto mines.&#8221;
He added that the workers were being paid a &#8220;miserable $1,596 per month for work far from home&#8221;. According to government data, the average monthly mining salary in Australia is A$10,413 ($6,919), which the report highlighted.
According to OT Watch, during the strike from May 10-17, all open pit and underground mining operations were halted. Workers reported that this stoppage may have caused some structural issues underground.
Rio Tinto commented that, &#8220;The stand-down did not affect mine operations and there was no material impact to mine production.&#8221;
Also Read: <a href="https://www.benzinga.com/news/large-cap/24/06/39155495/rio-tinto-invests-143m-in-low-emission-steel-research-and-development" target="_blank" rel="noreferrer noopener">Rio Tinto Invests $143M in Low-Emission Steel Research And Development</a>
In March last year, Rio Tinto began underground operations at Oyu Tolgoi and scaling up production to reach approximately 500,000 tons of copper annually starting in 2028.
Last month, Rio Tinto stated that Serbia is poised to approve the development of Europe&#8217;s largest lithium mine. The Jadar project, suspended in 2022, could start production by 2028, providing Europe with metal much needed for its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/large-cap/24/06/39357247/rio-tinto-to-initiate-largest-european-lithium-project-by-2028" rel="noreferrer noopener">electric vehicle (EV) industry</a>.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and NEOS ETF Trust Mast Global Battery Recycling &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EV#NYSE">EV</a>).
Price Action: RIO shares closed higher by 0.73% at $66.41 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/05/39037153/mining-rivals-join-forces-rio-tinto-bhp-partner-on-electric-truck-trials" target="_blank" rel="noreferrer noopener">Mining Rivals Join Forces: Rio Tinto &amp; BHP Partner On Electric Truck Trials</a></li>
</ul>

Media

Rio Tinto Scrambles to Avoid Repeat Strike at Mongolian Mine: Report

Commercial Metals Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMC#NYSE">CMC</a>) shares are trading higher after the company reported third-quarter FY24 net sales of $2.078 billion,&nbsp;beating <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39407376/cmc-reports-third-quarter-fiscal-2024-results" rel="noreferrer noopener">the consensus of $2.034 billion</a>.
The company stated that fundamentals remain strong in North American markets, supporting stable to modestly improving steel product margins, healthy shipment levels, and steady downstream backlog volumes.
Commercial Metals reported that the Europe Steel Group achieved nearly breakeven performance on an adjusted EBITDA basis in the third quarter. Market conditions remained stable compared to the previous quarter, with slight increases in finished steel pricing and product margins.
The Europe Steel Group&#8217;s average selling price increased by $8 per ton from the second quarter of fiscal 2024.
Core EBITDA decreased to&nbsp;$256.1 million from $384.5 million in the prior year quarter, with a core EBITDA margin of 12.3%.
Adjusted EPS was $1.02,<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener"> which is in line with the consensus.</a>
As of February 29, 2024, cash and cash equivalents totaled $698.3 million, with available liquidity of about&nbsp;$1.5 billion.
The company&#8217;s net cash flows from operating activities for the first nine months totaled $547.9 million.
In the quarter, CMC repurchased stock worth $51.8 million. As of May-end, $458.6 million shares remained available under the current share repurchase authorization.
Dividend: On June 19, 2024, the board declared a quarterly dividend of $0.18 per share (+13% Y/Y), payable on July 10, to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39397675/cmc-announces-quarterly-dividend-of-0-18-per-share" rel="noreferrer noopener">stockholders of record on July 1</a>.
Peter Matt, President and Chief Executive Officer, stated, &#8220;We expect consolidated financial results in our fiscal fourth quarter to be consistent with third quarter levels.  Finished steel shipments within the North America Steel Group are anticipated to be flat on a sequential basis, while adjusted EBITDA margin should remain relatively stable.&#8221;
&#8220;Adjusted EBITDA for our Europe Steel Group is likely to continue the quarter-to-quarter improvement trend despite market conditions that are expected to remain challenging.  Financial results for the Emerging Businesses Group should improve modestly, driven by steady underlying market <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">fundamentals and a healthy order book</a>.&#8221;
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>).
Price Action: CMC shares are up 5.85% at $53.71 at the last check Thursday.

Why Commercial Metals Shares Are Surging Today

Nucor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) shares are trading lower after the company inked a deal to acquire Rytec Corporation in&nbsp;an <a target="_blank" href="https://www.benzinga.com//node/39136535" rel="noreferrer noopener">all-cash transaction valued at&nbsp;$565 million.</a>
The acquisition price equates to around 12.5 times Rytec&#8217;s estimated 2024 EBITDA.
Rytec manufactures high-speed Spiral rigid doors for various industries and durable fabric doors for specialized applications. The company prioritizes product development, investing heavily in technology and automation to boost quality, efficiency, and safety.
Rytec&nbsp;has over 300 teammates operating out of two manufacturing facilities in&nbsp;Wisconsin.
Leon Topalian, Chair, President and Chief Executive Officer of Nucor, said, &#8220;Rytec is a leader in high-performance commercial doors and serves several growing end-user markets. This acquisition further executes our strategy to expand beyond our core steelmaking businesses into related downstream businesses.&#8221;
&#8220;Adding high-performance doors will create cross-selling opportunities with other Nucor businesses and greatly expand Nucor&#8217;s product portfolio serving the commercial arena.&#8221;
At the end of the first quarter of 2024, Nucor had $5.54 billion in cash, cash equivalents,<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/n38365379/nucor-reports-results-for-the-first-quarter-of-2024" rel="noreferrer noopener"> short-term investments, and restricted cash on hand</a>.
Investors can gain exposure to the stock via VanEck Steel ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLX#NYSE">SLX</a>) and Litman Gregory Funds Trust IMGP Berkshire Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDVG#NYSE">BDVG</a>).
Price Action: NUE shares are down 2.04% at $165.40 at the last check Monday.
Photo: Janno Nivergall from Pixabay