Cliffs Natural Resources -3.5% as Morgan Stanley outlines bear case

|By:, SA News Editor

Cliffs Natural Resources (CLF -3.5%) is the biggest loser in the S&P 500 after Morgan Stanley explains its bear case on the stock, citing Great Lakes supply, cost control issues and weaker seaborne iron ore pricing.

CLF long has enjoyed near monopoly pricing power in the isolated Great Lakes iron ore market, but the firm expects that will end as 10M tons of new capacity hits the market, and major global projects from Fortescue and Rio Tinto start up at the end of this year, which could pressure pricing in 2014.