Cleveland-Cliffs investors may view efficiency push as positive, says Citi

Citi notes Cleveland-Cliffs (CLF) has announced the temporary closure of its Dearborn steel mill, which will be offset by the return of the Cleveland C6 blast furnace in what the analyst says “reflects a re-balancing of capacity, not a reduction” with the goal being increased efficiency. The company also announced the temporary idling of two iron ore operations last week and the net headcount reduction from both actions may be around 1,200 workers, or about 3% of the company’s total, added the analyst, who thinks investors may view this efficiency push as positive. The firm has a Neutral rating and $11 price target on Cleveland-Cliffs shares.