Strong US auto demand backs steel price increases: Cliffs
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Update time : 2023-02-15 18:05:56
Cleveland-Cliffs CEO Lourenco Goncalves said Feb. 14 his company is seeing strong order activity from its automotive clients in 2023 following the successful renegotiation of fixed price contracts at the end of last year, and this momentum in the US market has underpinned the steelmaker's recent price increases and bullish shipment outlook.
"In our view of the current economic landscape, automotive is the most exciting steel consuming sector for 2023," Goncalves said during Cliffs' fourth-quarter earnings call with industry analysts. "Our January auto steel shipment rate was its best in nearly a year, and we expect this momentum to continue throughout 2023."
Cliffs expects to ship 16 million st in 2023, up from 14.8 million st in 2022. With bullish demand tailwinds, Goncalves said the full-year shipment target was achievable as the company has now completed most major equipment maintenance and is already on pace to meet its Q1 shipment target.
