Shares of steel producer Cleveland-Cliffs (NYSE:CLF) are rising today after the company announced that a substantial part of its fixed price volumes have been renewed, which will help the company realize higher fixed prices in 2023 as compared to 2022.
Moreover, these higher prices are separate from CLF’s earlier increases in the price of spot steel sales. This implies, with higher volumes and a similar product mix, CLF will realize an average selling price of $1,400 per net ton in 2023 as compared to $1,300 per net ton in 2022.
Add to this, the company also expects decreased Steelmaking unit costs in 2023 versus 2022. Despite today’s gains, CLF shares are still down nearly 24% so far this year.
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