Slowing economy cuts into profits at Cleveland-Cliffs, other steelmakers

The Wall Street Journal reports that steel prices in the U.S. "have fallen to the lowest level in two years," shrinking profits for giant steel companies, including Cleveland-Cliffs Inc., but "giving manufacturers hope for lower material costs."

Cliffs and sector peers United States Steel Corp., Nucor Corp. and Steel Dynamics Inc. "reported significantly lower profits from their steelmaking operations during the quarter that wrapped up at the end of September, compared with the same period last year when prices were at record levels," the newspaper notes.

The weakening demand that started during the summer "worsened during fall, pulling down the benchmark spot-market price for coiled sheet steel by more than 20% from the start of July through the end of September, according to S&P Global Commodity Insights. The price is now about 60% lower compared with a year ago."