{
  "id": 10511671,
  "title": "Why is Cleveland-Cliffs stock sliding today?",
  "url": "https://urgent.news/2026/09/28/why-is-cleveland-cliffs-stock-sliding-today",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-28T19:01:52.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/why-is-clevelandcliffs-stock-sliding-today-93CH-4921023"
  },
  "original_language": "en",
  "account": "Cleveland-Cliffs' stock experienced a significant 8.6% decline in today's trading session, closing at $11.14, after its wholly owned Canadian subsidiary, Stelco, announced plans to indefinitely halt its cold-rolled and coated steel operations at Hamilton Works in Ontario, Canada. This decision was primarily driven by an unsustainable market situation exacerbated by ongoing U.S. tariff-driven trade disruptions that are adversely affecting the Canadian steel industry.\n\nThe news, disclosed in a letter to customers and first reported by Bloomberg News, reveals that Stelco's operations are set to commence a phased closure as early as October 9, potentially leading to the layoff of approximately 350 steelworkers. The decline in Cleveland-Cliffs' stock is further compounded by the company's structural weaknesses, which distinguish it from domestic peers. With a debt-to-equity ratio exceeding 137%, Cleveland-Cliffs possesses limited financial resilience to cope with a substantial revenue reduction resulting from the shutdown of Stelco's operations.\n\nAnalyst sentiment toward Cleveland-Cliffs had already been cautious, as evidenced by Morgan Stanley reaffirming a Hold rating on September 25 and Wells Fargo maintaining a similar outlook a few days prior. The company's subsequent earnings release is scheduled for October 19, adding to the uncertainty surrounding its stock performance.\n\nComparing Cleveland-Cliffs to other steel sector peers highlights the company's unique challenges. While the broader market, represented by the S&P 500 and the Dow Jones, has experienced only modest declines of 0.6% and 0.5%, respectively, Cleveland-Cliffs and its Canadian subsidiary have faced a more severe downturn. This disparity underscores the company's exposure to two-sided tariffs: benefiting from U.S. Section 232 protections as a domestic producer, yet adversely affected as a Canadian operator due to Stelco's operations.\n\nThe Stelco announcement has crystallized company-specific risks that investors had previously acknowledged but not fully priced into Cleveland-Cliffs' stock valuation. The revelation has led to a sharp reevaluation of the company's shares. Until there is a clearer understanding of the trajectory of U.S.-Canada trade policy, the uncertainty surrounding Cleveland-Cliffs' Canadian operations is anticipated to continue casting a shadow over the stock until its October earnings report.",
  "summary": null,
  "key_points": [
    "Cleveland-Cliffs stock drops 8.6% after Stelco halts operations.",
    "Stelco's shutdown due to unsustainable market, U.S. tariffs.",
    "Company's debt-to-equity ratio exceeds 137%, limiting resilience."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}