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Cliffs Natural Resources (CLF) says it could scrap its Bloom Lake expansion project in Canada's...

Cliffs Natural Resources (CLF) says it could scrap its Bloom Lake expansion project in Canada's iron-rich Labrador Trough region if iron ore prices fall back to $90/metric ton. The mine is seen by analysts as a key future growth driver, but "at $90, the project doesn't go, which is consensus right now," CEO Joseph Carrabba tells Reuters; at $110 or $120, roughly the current price, it's a go.
Comments (2)
  • WPSPIKER
    , contributor
    Comments (1141) | Send Message
     
    I would like to say I'm long (CLF) for several reasons, mostly the fact that the Auto and Housing sectors are booming. Both of which are heavy users of US/Canadian steel. The only real drawback is the high recycle rates that has pushed the steel ore market down. Since the downturn there are tons of scrappers making the rounds recycling anything left laying for 10 seconds. It would make a big difference if the scrap iron dealers did more to stop the theft issues (many states are addressing this but it all depends on the recycle dealers to monitor and do much of the work for the cops.)

     

    Mark
    19 Jun 2013, 07:35 PM Reply Like
  • dreamin
    , contributor
    Comments (68) | Send Message
     
    I thought that Bloom Lake was supposed to get to roughly $60/ton after the current expansion project was complete?
    19 Jun 2013, 11:12 PM Reply Like
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