Iron ore ramp-ups may hit Cliffs: bank

Apr 08, 2013 | 01:50 PM | Stacy Irish

Tags  DRI, iron ore, Cliffs, Credit Suisse, ArcelorMittal, Essar, North America, Great Lakes AK Steel

NEW YORK — Iron ore miner Cliffs Natural Resources Inc. could become a marginal producer and be forced to consider a significant equity raise or even an asset sale if major structural changes take place in the company’s key Great Lakes market, according to a report by Credit Suisse analysts.

Cleveland-based Cliffs generates 75 to 80 percent of its group earnings in the Great Lakes region, which is now a net importer of iron ore, Credit Suisse said. But with a number of new entrants scheduled to come online in coming years—including Essar Steel Minnesota LLC, AK Steel Corp.’s joint venture with Magnetation Inc., and U.S. Steel Corp.’s planned Keetac expansion—that region could be facing a potential surplus, Credit Suisse said.....

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