Jim Cramer on Cleveland-Cliffs: “It’s Emblematic of the Broader Manufacturing Economy”

Cleveland-Cliffs Inc. (NYSE:CLF) was among Jim Cramer’s stock calls on Mad Money recently. Cramer mentioned the stock during the episode and remarked:

One major company reported Cleveland-Cliffs, big steel company, big time steel. It saw its stock dip 2% in response to its earnings, but the results were better than the share price would suggest. As CEO Lourenco Goncalves said on his conference call, “Our order book is full, and the automotive original equipment manufacturers are booking more and more steel from Cliffs.” Then he called pricing strength visible and said production schedules are tight, and lead times have moved out. He went on to say, “That combination, strong backlogs, disciplined production, and visibility, is what a healthy steel market looks like.” Now, some may …might say that the President, with his tariffs… jacked up the price of steel, but that would be wrong. It leaves out a key detail. The price of hot-rolled steel, major grade that’s used in autos that Cleveland-Cliffs dominates, is unchanged in the last 5 years, unchanged. Why do we care about Cleveland-Cliffs? Because it’s emblematic of the broader manufacturing economy, and we don’t want that to falter. We want the Fed to cut rates to help the consumer, but we don’t want to see a decline in a key building block of construction before that happens.

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Cleveland-Cliffs Inc. (NYSE:CLF) produces flat-rolled and specialty steel products, including stainless, electrical, and tubular steels, as well as iron ore and hot-briquetted iron.

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