Results for: Steel

Australian coal producer Whitehaven Coal has sold a 30% stake in its Blackwater metallurgical coal mine to Japanese steelmakers Nippon Steel and JFE Steel for $1.08 billion. The deal includes long-term offtake agreements guaranteeing a steady supply of high-quality coal for the steelmakers, ensuring stable raw material procurement and secure earnings for them in a shifting global energy landscape. Whitehaven will manage the joint venture and expects the transaction to complete in the first quarter of 2025.

ArcelorMittal has completed its acquisition of a 28.4% stake in Vallourec, a leading producer of high-quality tubular products. The acquisition, valued at approximately $1 billion, aligns with ArcelorMittal’s growth strategy and positions them to capitalize on the growing clean energy market.

Cleveland-Cliffs (NYSE: CLF) reported a relatively lackluster Q1’24 due to headwinds in the steel market and geopolitical pressures. Despite these challenges, the company remains focused on its long-term decarbonization initiatives and cost-cutting measures. Management also announced a $1.5 billion share repurchase program. While the near-term outlook is uncertain, the company’s positive long-term prospects and efforts to enhance shareholder value warrant a BUY recommendation with a price target of $28.05/share.

Nucor CEO Leon Topalian expressed confidence in the company’s future despite quarterly earnings that fell short of expectations. While the second quarter will see moderated earnings, Topalian emphasized the long-term strength of the steel products segment. Nucor’s focus remains on long-term performance, and the CEO believes the company’s best days are yet to come.