For the quarter ending 30 June, the company reported net income of US$601 million, or US$1.13 per diluted share, on revenue of US$6.3 billion. Revenue rose about 26% over the same quarter last year. 

Despite the decline, Cliffs’ net income is up 66% through the first six months of this year compared to the same period in 2021. And further profitability is expected, said Cliffs chairman and chief executive Lourenco Goncalves. 

“Our industry-leading exposure to the automotive sector separates us from all other steel companies in the United States. The health of the steel market over the past year and a half has been largely driven by the construction sector, with automotive lagging far behind — mainly due to supply chain issues unrelated to steel. Nevertheless, with automotive demand outpacing production for more than two years now, the consumer backlog for cars, SUVs and trucks has become enormous,” he said. 

“As supply chain problems continue to be resolved by our automotive clients, pent-up demand for electric vehicles continues to increase, and light vehicle manufacturing catches up with demand, Cleveland-Cliffs will be the primary beneficiary among all steel companies in the United States. This important distinction of our business relative to other steel producers should become clear as we progress through the remainder of this year and into next year.”

The company added that it expects to see significant increases in the average selling prices on its fixed steel contracts when they reset in October.