Cleveland-Cliffs Inc. (CLF) shares tumbled 5.83% in after-hours trading on Monday, following the release of the steel producer's fourth-quarter earnings results. The drop extends the recent struggles for the stock, with concerns over cheap steel imports and broader bearish sentiment toward the sector weighing on performance.
For the fourth quarter, Cleveland-Cliffs reported an adjusted loss per share of $0.92, widely missing analyst estimates of a $0.61 loss. The disappointing results underscore the headwinds facing the steelmaker, which has grappled with rising costs and pricing pressures.
Adding to the woes, CNBC's Jim Cramer highlighted worries over cheap steel imports from China entering the U.S. market via Mexico, a practice known as "transshipment." Cramer expressed concern about how Cleveland-Cliffs is faring amid these challenges, stating, "I worry about how it's doing, whether the US can actually stop these darn subsidized transshipped imports."
The "Mad Money" host has been notably bearish on steel stocks like Cleveland-Cliffs in recent months, calling them "the worst stocks in the market" earlier this year. Cramer's comments reflect the broader negative sentiment surrounding the steel industry, which has faced headwinds from slowing demand and oversupply issues.
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