Any negative Hyundai steel impact would fall most on Cleveland-Cliffs, says Citi

After the U.S. government confirmed that Hyundai (HYMTF) would build a roughly $5B steel mill in Louisiana, Citi said that the car maker’s decision likely reflects concerns from global automakers about U.S.-based supply of auto sheet, which has become increasingly consolidated. The market impact of Hyundai will largely depend on U.S. auto builds and whether production is significantly re-shored, the analyst tells investors in a research note, adding that any negative impact would seem to fall hardest on Cleveland-Cliffs (CLF), currently America’s largest auto sheet supplier.