Post by
fishcarrier on Nov 03, 2021 5:31pm
Problem
There's something I find rather disturbing. I just checked over Cleveland Cliff's earnings report. They ship about 63% hot rolled and coated. Their average price in H1 was 1016. In Q 3 30% higher at 1324.
Stelco ships 91% hot rolled and coated averaging 1126 for H1, 2021. If their price for Q. 3 would also increase by 30%, that would be below 1500.
But the Canadian dollar is/was about 24% higher.
Is Stelco reporting sales in US dollars? Or do we get that much less? Either way, if our increase only goes to 1500 max, my earnings estimate goes way out the window. Anyone?
Comment by
marsman1 on Nov 03, 2021 8:07pm
Be careful Fishcarrier what you put out there. What we don't know is HOW CLF sold there products. Maybe they sold future months at a lower price on the futures market , or maybe a blend of sales. Stelco sells directly to the customer at the current price of the day. so your $8.23/ share seems to me to be a resonable assumption. And BTW for Stelco , the price is in U.S. dollars .
Comment by
dieter216 on Nov 04, 2021 7:23am
...further to your point CLF has already stated that they expect to be selling at higher prices 1st half next year as they renegotiate pricing on contracts. CLF has been selling more at fixed forward pricing vs Stelco is more spot pricing.
Comment by
Jasonuw on Nov 04, 2021 9:49am
How do you figure Stelco is spot pricing when their Q2 prices were LOWER than everyone else when spot was HIGHER than all the long term contracts?