Stock Market Today, July 23: Cleveland-Cliffs Stock Soars on Robust Steel Demand and Pricing
2026-07-23 21:29
•Howard Smith •The Motley Fool
•• ••• Axe Capital view
Steel Stocks Surge as Demand and Prices Climb
Strong earnings and outlooks from US steelmakers signal a bullish steel cycle that could benefit select JSE miners.
Cleveland-Cliffs’ recent earnings beat and bold guidance has lit a fire under the steel sector. EBITDA more than doubled quarter-on-quarter, reflecting tight domestic steel markets and better pricing power. US peers Nucor and Steel Dynamics confirm this isn’t isolated; steel demand is firm and pricing looks sustainable for now. For South Africa, the story matters because Anglo American and BHP supply key steelmaking materials like iron ore and metallurgical coal. If this robust cycle extends, better commodity prices could underpin these miners and push the rand stronger against the dollar as exports improve. However, a slowdown in global industrial activity or a stronger dollar could reverse this trend quickly, especially given South Africa’s exposure to China’s growth. Still, with steel demand showing real resilience, selective exposure to mining counters linked to steel production seems justified. this is just my opinion and not financial advice
Buy Anglo American and BHP for steel commodity exposure; avoid direct steel-related industrial stocks on the JSE that remain under pressure. Watch the USD/ZAR closely for currency-driven volatility.
- Anglo American
- BHP
- USD/ZAR
- Global industrial slowdown
- Stronger USD dampening commodity prices
6/10
Cleveland-Cliffs stock surged 15.98% on strong quarterly results and upbeat guidance, driven by robust steel demand and pricing. The company's adjusted EBITDA jumped from $95 million in Q1 to $286 million in Q2, with expectations to reach approximately $575 million in Q3. The broader steel sector is thriving, with peers Nucor and Steel Dynamics also posting strong results.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Howard Smith
Categories: Equities, Earnings
Tickers: CLF, NUE, STLD
Sentiment: Positive - Stock surged 15.98% on strong quarterly results, positive free cash flow, and significantly improved EBITDA guidance. Management expects Q3 EBITDA to approximately double to $575 million, indicating robust operational performance and market strength. Stock closed up 2.23% and is highlighted as a sector leader with strong fundamentals. The article notes investors can expect similar positive results when Nucor announces Q2 earnings next week, reflecting sector-wide strength.
Keywords: steel demand, pricing strength, earnings growth, EBITDA, flat-rolled steel, domestic steel market
Insights:
- CLF: Positive: Stock surged 15.98% on strong quarterly results, positive free cash flow, and significantly improved EBITDA guidance. Management expects Q3 EBITDA to approximately double to $575 million, indicating robust operational performance and market strength.
- NUE: Positive: Stock closed up 2.23% and is highlighted as a sector leader with strong fundamentals. The article notes investors can expect similar positive results when Nucor announces Q2 earnings next week, reflecting sector-wide strength.
- STLD: Positive: Stock closed up 0.81% and recently posted strong Q2 profit and record shipments, reinforcing domestic pricing strength in the steel sector.