Cleveland-Cliffs partners with Nucor to potentially bid for US Steel By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2025
0mins
Source: Investing.com
Cleveland-Cliffs and Nucor's Bid for U.S. Steel: Cleveland-Cliffs is preparing an all-cash bid in the high $30s per share for U.S. Steel, with plans to sell its Big River Steel subsidiary to Nucor after the acquisition.
Market Reaction and Regulatory Context: Following the news, U.S. Steel's shares rose nearly 7%, while the Biden administration has delayed a decision on Nippon Steel's competing $14.9 billion bid until June.
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 10.790
Low
5.75
Averages
12.78
High
17.00
Current: 10.790
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, and slabs. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless-steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Materials Sector Poised for Growth Amid Industrial Revolution
- Sector Performance: The materials sector, accounting for only 1.9% of the S&P 500, has outperformed the index by 700 basis points so far in 2026, indicating strong investment returns and attracting increased investor interest.
- Steel Industry Transformation: Cleveland-Cliffs, the largest U.S. producer of flat-rolled steel, has seen its stock price rise nearly 50% over the past year, and its partnership with Palantir Technologies to leverage AI in logistics and manufacturing enhances its market position.
- Gas Supplier Advantage: Air Products and Chemicals, with a $9 billion order backlog, has established itself as a major supplier of industrial gases needed for electronic component manufacturing, and its stock has risen 23.5% year-to-date, reflecting strong execution and potential for earnings growth.
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Cleveland-Cliffs Partners with Palantir for AI Integration
- AI Technology Partnership: Cleveland-Cliffs has signed a three-year agreement with Palantir to integrate AI software into production planning, order entry, and daily operations, aiming to enhance manufacturing efficiency amid intensifying global steel competition.
- Data Integration Improvement: By implementing Palantir's platform, Cleveland-Cliffs seeks to improve data integration and coordination across facilities, which is expected to optimize decision-making processes and enhance overall operational performance, driving the company's modernization efforts.
- Complexity Management: CEO Lourenco Goncalves emphasized that the complexity of integrated steelmaking allows Palantir's platform to provide solutions that surpass human-driven processes, demonstrating the company's strategic commitment to boosting productivity and performance.
- Industry Transformation Signal: This partnership represents not only an incremental step in Cleveland-Cliffs' productivity enhancement efforts but also reflects a broader trend of traditional industrial players increasingly relying on AI technology to gain operational advantages and adapt to rapidly changing market conditions.
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- Historical Waste Management: Under the consent decree, Cleveland-Cliffs is responsible for managing closed landfills that historically received waste from the mill, including industrial wastewater treatment and sludge from steel production, which will impact its operational costs and compliance obligations.
- Lawsuit Closure: This settlement will close a civil lawsuit against the company's predecessor, AK Steel, initiated by the DOJ, indicating a significant shift in the company's legal and environmental responsibilities that could affect its future legal risks and reputation.
- Regulatory Pressure: With the involvement of the state of Ohio and environmental groups, this settlement reflects ongoing regulatory pressure on Cleveland-Cliffs regarding environmental compliance, potentially prompting the company to enhance its environmental management and sustainability strategies in the future.
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Cleveland-Cliffs Partners with Palantir for AI Integration
- Three-Year Agreement: Cleveland-Cliffs has entered into a three-year agreement with Palantir to deploy AI tools across its operations and commercial processes, aiming to enhance overall efficiency through data integration and optimized production workflows.
- AI Platform Applications: Palantir's AI platform will serve as the core of Cleveland-Cliffs' internal systems, encompassing production planning, order entry, and broader operational workflows, thereby improving coordination between facilities and anticipating operational constraints in real time.
- Modernization Efforts: This agreement builds on earlier pilot work with Palantir, demonstrating Cleveland-Cliffs' ongoing commitment to modernizing its steel production systems and improving efficiency, even as its shares fell 1.2% in premarket trading.
- Market Reaction: Despite Cleveland-Cliffs expecting a $60 per ton increase in selling prices for Q2 and targeting $425 million in cash receipts from idled properties, the market's cautious response to the latest agreement reflects investor concerns about the company's future outlook.
See More
Cleveland-Cliffs Stock Rises 8.71% Following Q1 Results
- Stock Surge: Cleveland-Cliffs' stock closed up 8.86% at $10.62 on Monday, primarily driven by last week's Q1 results that modestly beat revenue expectations and indicated a narrower loss, reflecting increased market confidence in the company's fundamentals.
- Volume Spike: Trading volume reached 41.9 million shares, approximately 123% above the three-month average of 18.8 million shares, indicating heightened investor interest in the steel sector and potentially signaling future market trends.
- Optimistic Industry Outlook: Despite reporting a net loss in Q1 due to one-time energy costs, Cleveland-Cliffs saw increased shipments and revenue in a strong steel market, suggesting the company is positioned for future profitability growth.
- Automotive Demand Driver: The company highlighted automotive demand as a key growth factor, facing challenges in Q1, but with peers like Steel Dynamics and Nucor confirming strong order demand, it is expected to positively impact Cleveland-Cliffs' future performance.
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Materials Sector Poised for Growth Amid Industrial Revolution
- Sector Performance: The materials sector, accounting for only 1.9% of the S&P 500, has outperformed the index by 700 basis points so far in 2026, indicating strong investment returns and attracting increased investor interest.
- Steel Industry Transformation: Cleveland-Cliffs, the largest U.S. producer of flat-rolled steel, has seen its stock price rise nearly 50% over the past year, and its partnership with Palantir Technologies to leverage AI in logistics and manufacturing enhances its market position.
- Gas Supplier Advantage: Air Products and Chemicals, with a $9 billion order backlog, has established itself as a major supplier of industrial gases needed for electronic component manufacturing, and its stock has risen 23.5% year-to-date, reflecting strong execution and potential for earnings growth.
- Helium Market Challenges: Linde, forming an oligopoly with Air Products in the helium market, faces supply constraints due to the war in Iran and Western sanctions, yet its long-term commitments position it well to meet helium demand, potentially driving long-term share appreciation.
See More
Cleveland-Cliffs Partners with Palantir for AI Integration
- AI Technology Partnership: Cleveland-Cliffs has signed a three-year agreement with Palantir to integrate AI software into production planning, order entry, and daily operations, aiming to enhance manufacturing efficiency amid intensifying global steel competition.
- Data Integration Improvement: By implementing Palantir's platform, Cleveland-Cliffs seeks to improve data integration and coordination across facilities, which is expected to optimize decision-making processes and enhance overall operational performance, driving the company's modernization efforts.
- Complexity Management: CEO Lourenco Goncalves emphasized that the complexity of integrated steelmaking allows Palantir's platform to provide solutions that surpass human-driven processes, demonstrating the company's strategic commitment to boosting productivity and performance.
- Industry Transformation Signal: This partnership represents not only an incremental step in Cleveland-Cliffs' productivity enhancement efforts but also reflects a broader trend of traditional industrial players increasingly relying on AI technology to gain operational advantages and adapt to rapidly changing market conditions.
See More
Cleveland-Cliffs Reaches Environmental Settlement with DOJ
- Environmental Settlement: The proposed settlement with the U.S. Department of Justice requires Cleveland-Cliffs to address hazardous waste releases at its Middletown Works steel plant, with corrective measures expected to cost $12 million, highlighting the company's increasing environmental accountability.
- Historical Waste Management: Under the consent decree, Cleveland-Cliffs is responsible for managing closed landfills that historically received waste from the mill, including industrial wastewater treatment and sludge from steel production, which will impact its operational costs and compliance obligations.
- Lawsuit Closure: This settlement will close a civil lawsuit against the company's predecessor, AK Steel, initiated by the DOJ, indicating a significant shift in the company's legal and environmental responsibilities that could affect its future legal risks and reputation.
- Regulatory Pressure: With the involvement of the state of Ohio and environmental groups, this settlement reflects ongoing regulatory pressure on Cleveland-Cliffs regarding environmental compliance, potentially prompting the company to enhance its environmental management and sustainability strategies in the future.
See More
Cleveland-Cliffs Partners with Palantir for AI Integration
- Three-Year Agreement: Cleveland-Cliffs has entered into a three-year agreement with Palantir to deploy AI tools across its operations and commercial processes, aiming to enhance overall efficiency through data integration and optimized production workflows.
- AI Platform Applications: Palantir's AI platform will serve as the core of Cleveland-Cliffs' internal systems, encompassing production planning, order entry, and broader operational workflows, thereby improving coordination between facilities and anticipating operational constraints in real time.
- Modernization Efforts: This agreement builds on earlier pilot work with Palantir, demonstrating Cleveland-Cliffs' ongoing commitment to modernizing its steel production systems and improving efficiency, even as its shares fell 1.2% in premarket trading.
- Market Reaction: Despite Cleveland-Cliffs expecting a $60 per ton increase in selling prices for Q2 and targeting $425 million in cash receipts from idled properties, the market's cautious response to the latest agreement reflects investor concerns about the company's future outlook.
See More
Cleveland-Cliffs Stock Rises 8.71% Following Q1 Results
- Stock Surge: Cleveland-Cliffs' stock closed up 8.86% at $10.62 on Monday, primarily driven by last week's Q1 results that modestly beat revenue expectations and indicated a narrower loss, reflecting increased market confidence in the company's fundamentals.
- Volume Spike: Trading volume reached 41.9 million shares, approximately 123% above the three-month average of 18.8 million shares, indicating heightened investor interest in the steel sector and potentially signaling future market trends.
- Optimistic Industry Outlook: Despite reporting a net loss in Q1 due to one-time energy costs, Cleveland-Cliffs saw increased shipments and revenue in a strong steel market, suggesting the company is positioned for future profitability growth.
- Automotive Demand Driver: The company highlighted automotive demand as a key growth factor, facing challenges in Q1, but with peers like Steel Dynamics and Nucor confirming strong order demand, it is expected to positively impact Cleveland-Cliffs' future performance.
See More
High Options Volume for Compass Therapeutics and CVR Energy
- Compass Therapeutics Options Activity: Compass Therapeutics Inc (CMPX) has seen an options volume of 19,063 contracts today, equating to approximately 1.9 million shares, which represents a significant 64.4% of its average daily trading volume over the past month.
- High Call Option Volume: Within CMPX, the $2 strike call option has traded 6,050 contracts today, representing around 605,000 underlying shares, indicating strong market expectations for the stock's future appreciation.
- CVR Energy Options Dynamics: CVR Energy Inc (CVI) has recorded an options volume of 6,644 contracts today, approximately 664,400 shares, reflecting 61.9% of its average daily trading volume over the past month, showcasing heightened investor interest.
- Bullish Call Option Trends: For CVI, the $32.50 strike call option has seen 5,023 contracts traded today, representing about 502,300 shares, suggesting a sustained bullish sentiment towards the stock in the market.
See More
