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This statistic highlights Cleveland-Cliffs’ Average Selling Price (ASP), reported on a quarterly basis from Q1 2020 onwards.
|Period||Q2 2020||Q2 2021||Q3 2021|
|Average Net Selling Price per ton of steel products||$1.04||$1.12||$1.33|
(All figures in billions, except percentages)
Cleveland Cliffs’ generates its revenue through the sale of its steel and iron products across multiple regions. The company currently operates through 5 corporate offices and more than 35 steelmaking, tooling, and tabular units spread across North America. Its average selling price (ASP) per ton of steel increased from $1.04 billion in Q2 2020 to $1.12 billion in Q2 2021, registering a growth of 7.69% on a year-on-year basis. It also grew from $1.12 billion in Q2 2021 to $1.33 billion in Q3 2021, marking a growth of 18.75% on a quarter-on-quarter basis.
Cleveland Cliffs’ follows a cost-based & value-based pricing strategy and the price of its products is significantly influenced by the overall price fluctuations of steel and iron ore in the market and the price of the products their customers sell. The prices are also affected by various regulatory changes. To avoid such fluctuations, the company enters into annual fixed-price agreements for its raw materials. It also enters into variable price contracts with customers which allows it to adjust selling prices as per the cost of raw materials.
The company along with other domestic US steel producers faces a lot of competition from foreign steel producers, who are able to sell their products at significantly lower prices.
About the Company
Cleveland Cliffs is the largest flat-rolled steel producer and the largest supplier of iron ore pellets in North America. It started out as a mine operator in 1847. With more than 175 years of operations, the company now employs a huge workforce of 25,000 people and is headquartered in Cleveland.
In 2020, the company acquired AK Steel and ArcelorMittal US in order to integrate their iron ore business with steel production. This is because the company is now focusing on the Automotive end market. The diverse product portfolio of Cleveland Cliffs ranges across products like custom-made pallets & HBI, flat-rolled carbon steel, hot & cold stamping, stainless steel, electrical steel, plate steel, tinplate, carbon & stainless steel tubing, and tooling and long steel products. The company is traded at the NYSE (New York Stock Exchange) with the ticker name CLF and its stock forms a part of the S&P 400 Index. Some of the key competitors of Cleveland Cliffs include companies like Howmet Aerospace, China Minmetals, Gerdau, Sandvik, and Barrick Gold Corporation.
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