One Reason Cliffs Natural Resources (CLF) Stock Is Up Today
posted on
Apr 16, 2015 07:59AM
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NEW YORK (TheStreet) -- Shares of iron ore producer Cliffs Natural Resources (CLF - Get Report ) rose 5.45% to $5.61 Wednesday as iron ore prices crept above $50 a ton.
The benchmark Tianjin iron ore spot price in China climbed just above the $50 mark on Tuesday thanks to a recent surge in the commodity's price. But this figure is still less than half the $117 a ton from this time last year and less than one-third of the peaks above $180 a ton in 2011.
Iron ore prices have climbed this week as Brazilian exports of the commodity rose to a three-month high.
The South American nation, which accounts for approximately 25% of the global market share of iron ore's trade volume, exported 30.8 million tons of iron ore in March 2015, a three-month high.
This figure marks an increase of 6.3 million tons year-over-year and a 21.9% increase month-over-month. Increased volumes from Vale (VALE ), the major iron ore exporter from Brazil.
Brazil is the second-largest iron ore exporter in the world after Australia, which makes its exports a key metric to watch. Iron ore exports from the South American nation accounted for 18% of China's overseas purchases in 2014 and 19% in 2013.
Iron ore prices have been declining for months amid a global oversupply, which has pushed down stocks of iron ore producers such as Cliffs and Vale.
Separately, TheStreet Ratings team rates CLIFFS NATURAL RESOURCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLIFFS NATURAL RESOURCES INC (CLF) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: