Cleveland-Cliffs Applauds Department of Commerce’s Final Determinations on Antidumping and Countervailing Duties for Tin Mill Products

Rhea-AI Summary

Cleveland-Cliffs Inc. (NYSE: CLF) applauds the Department of Commerce’s Final Antidumping and Countervailing Determinations on tin mill products from several trade partners. The investigation found Canada, Germany, Korea, and China guilty of dumping tin mill products in the U.S. market. Cleveland-Cliffs will continue to work with the USW to advocate for an affirmative final injury determination by the International Trade Commission. Chairman, President & CEO, Lourenco Goncalves, expressed appreciation for the Department of Commerce's diligent investigation and emphasized the company's commitment to correcting unfair trade practices in the tin mill products industry.

Insights

Market Research Analyst

Today's determination by the Department of Commerce represents a significant development for Cleveland-Cliffs Inc. and the broader steel industry. The enforcement of antidumping and countervailing duties is likely to reduce competitive pressure from imports, potentially leading to increased market share and pricing power for domestic producers like Cleveland-Cliffs. This regulatory environment could bolster the company's financial performance, as it may face less pricing competition from foreign producers.

The decision also underscores the importance of trade policies in shaping market dynamics. Companies within the steel sector and investors alike should monitor the implementation of these duties and the response from affected trade partners. Retaliatory measures or changes in trade agreements could influence future market conditions and Cleveland-Cliffs' strategic positioning.

Legal Expert

The Department of Commerce's final determinations mark the end of a year-long legal process that has found certain international players guilty of unfair trade practices. The legal implications for Cleveland-Cliffs are significant, as the imposition of duties on tin mill products from Canada, Germany, Korea and China will likely create a more favorable competitive landscape for the company. This legal backing may also serve as a deterrent against future trade violations, which can contribute to a more stable and predictable market for domestic producers.

However, it is important to note that these determinations may lead to appeals or further legal actions by the affected countries. Stakeholders should be aware of the potential for a protracted legal struggle that could impact the steel industry's regulatory framework and Cleveland-Cliffs' operations.

Financial Analyst

The Department of Commerce's ruling is poised to have a tangible impact on Cleveland-Cliffs' financial outlook. Antidumping and countervailing duties can act as a catalyst for revenue growth by protecting domestic companies from unfairly priced imports. Investors should consider the potential increase in domestic sales volume and improved profit margins as a result of decreased competition.

In the short-term, Cleveland-Cliffs may experience an uptick in stock market performance due to positive investor sentiment surrounding the protectionist measures. Long-term benefits, however, will depend on the company's ability to capitalize on the reduced competition and the sustainability of these trade policies amid global economic and political shifts. It is also crucial to analyze how these measures fit within the broader context of the industry's supply and demand dynamics.

CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) today applauded the Department of Commerce’s Final Antidumping and Countervailing Determinations on tin mill products from several trade partners responsible for unfair trade. In January 2023, Cleveland-Cliffs and the United Steelworkers jointly filed an antidumping and countervailing duty trade case alleging that a surge of dumped and subsidized tin mill product imports had materially injured Cleveland-Cliffs’ Weirton operation and its USW workforce.

Today’s announcement by the Department of Commerce is the culmination of a year-long investigation that ultimately produced the concrete determination that Canada, Germany, Korea and China are all guilty of dumping tin mill product in the U.S. market. Together with the existing Section 232 tariffs and quotas, these dumping calculations will provide a check against unfairly traded products from all the major sources of tin mill imports.

In response to Friday’s announcement, Cleveland-Cliffs’ Chairman, President & CEO, Lourenco Goncalves, stated: “Today’s announcement is yet further evidence that domestic companies and workers in the domestic tin mill industry have been subject to unfair, illegal trade practices. I wish to express appreciation to the Department of Commerce for its diligent investigation. Cleveland-Cliffs will continue to work closely with the USW to advocate for an affirmative final injury determination by the International Trade Commission, which will allow us to correct the rampant unfair trade in the tin mill products industry.”

Mr. Goncalves concluded: “With the heightened levels of both geopolitical uncertainty and supply chain disruptions in the world, we continue to expect disturbances in international trade. Today’s outcome should put importers on notice that the United States will not tolerate unfair trade that harms employers, workers and communities.”

About Cleveland-Cliffs Inc.

Cleveland-Cliffs is the largest flat-rolled steel producer in North America. Founded in 1847 as a mine operator, Cliffs also is the largest manufacturer of iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. Cleveland-Cliffs is the largest supplier of steel to the automotive industry in North America and serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Headquartered in Cleveland, Ohio, Cleveland-Cliffs employs approximately 27,000 people across its operations in the United States and Canada.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240105765017/en/

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Source: Cleveland-Cliffs Inc.

FAQ

What is the ticker symbol for Cleveland-Cliffs Inc.?

The ticker symbol for Cleveland-Cliffs Inc. is CLF.

What trade partners were found guilty of dumping tin mill products in the U.S. market?

Canada, Germany, Korea, and China were found guilty of dumping tin mill products in the U.S. market.

Who filed the antidumping and countervailing duty trade case?

Cleveland-Cliffs and the United Steelworkers jointly filed the antidumping and countervailing duty trade case.

What will Cleveland-Cliffs continue to work with the USW to advocate for?

Cleveland-Cliffs will continue to work with the USW to advocate for an affirmative final injury determination by the International Trade Commission.

Who is the Chairman, President & CEO of Cleveland-Cliffs?

The Chairman, President & CEO of Cleveland-Cliffs is Lourenco Goncalves.